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Clients who opt for the privacy of alternate dispute resolution to resolve business differences are sometimes chagrined to learn that designating an ADR does not by itself guarantee confidentiality of trade secrets. The usual challenge of guaranteeing confidentiality can be compounded by virtual arbitration proceedings.
Set forth below are tips on best practices to protect trade secrets in such proceedings, particularly where such information represents the focal point of the dispute.
Arbitration Agreement
Preserving confidentiality commences with the drafting of the arbitration agreement. Practitioners should not overlook the need for trade secret protections at the outset especially when the agreement is part of an all-encompassing contract (whether an employment contract, a nondisclosure agreement, or a purchase and sale contract) if the contractual relationship subsequently collapses into adversity. ....

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