Burnley are one of several clubs said to be pursuing Judge, who has scored 10 goals and provided seven assists for Brentford this season.
Smith said that Burnley have made a bid to sign the Irishman, although Clarets boss Sean Dyche laughed off suggestions that it could be in the £8m region.
"It can be unsettling but to a player like Alan Judge, he just gets on with his game," Smith told reporters.
"He's got a valuation to the football club, he knows that and he's been kept in the loop all along.
"Maybe Burnley's timing's not right but it depends on how you look at it with a game on Friday against them."
If Judge were to join Burnley he would follow the path of Andre Gray, who is the Championship's top scorer this term with 16 goals.