READERS may have seen reports of the $100m fine and world championship penalties that have been imposed on the McLaren Mercedes Formula One team. If you thought the stories of industrial espionage, secret emails and text messages were as relevant to those of us in the real world as Formula One racing is to the Saturday trip to Tesco in your family car, you would be wrong.

The esoteric world of hi-technology revealed by this story is one which has many parallels in not only technology-based businesses, but also in more traditional ones where confidential information is a valuable business asset.

The subject matter may be a little less glamorous, but the implications can be no less serious.

This chapter of the Ferrari/McLaren saga is set within the private world of the FIA Sporting Code, but the principles it discloses have parallels in the laws that apply to the relationships between businesses and their employees and their competitors.

The issues are nothing new, and employers, whether concerned about the preservation of commercially sensitive information, losing staff in possession of business secrets, considering employing staff from competitors or already having engaged gGreeks bearing giftsh, should see there are lessons to be learned here and important questions to be asked.

For example: What information can be protected, and how can an employer protect themself from current employees giving away their secrets while still employed?

How should potential employees offering access to a competitorsf secrets be dealt with, and what would you say if a current employee, with knowledge that you knew it should not be disclosing to you, offers to do so?

The answers to these questions are not straightforward, but there are things that can be done to minimise risks and mitigate potential damage.

While McLaren may feel that it was the victim of rogue employees, it has so far failed to avoid the sanction of the FIA.

Unfortunately, in the real world UK law will impose liability on employers for the actions of their staff. Be warned.

* Stephen Greenway is a partner in the business and commercial law team at Blackett Hart and Pratt LLP and was previously in-house counsel to the Williams Formula One team. Contact him on stepheng@b-h-p.com or on 01325-376431.