EU set for harmonised rules on trade secrets

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

EU set for harmonised rules on trade secrets

The European Commission has today proposed a directive on trade secrets to replace the patchwork of rules across the EU

The draft directive introduces a common definition of trade secrets, sets out procedures for victims of trade secret misappropriation to seek redress and introduces measures that courts may use to avoid leakage of trade secrets submitted to it in the course of civil litigation on trade secrets theft.

The proposed rules come after officials in Brussels commissioned a study and held a public consultation on the issue. It concluded that businesses find it hard to understand the rules on trade secrets across the EU and are reluctant to sue alleged infringers for fear that the courts will not keep their trade secrets confidential.

The Commission says that one in five European companies has been the victim of trade secret misappropriation, or attempts at misappropriation, at least once in the past 10 years.

Vice-President Antonio Tajani said that protecting trade secrets is particularly important for smaller businesses, which rely more heavily on trade secret protection than larger companies – in part because of the cost of patenting and protection against infringement.

At the moment, 18 EU member states have laws on misappropriation of trade secrets, although some, including Germany and Spain, do not define what trade secrets are. In Belgium, France, Ireland, Luxembourg, Malta, the Netherlands and the UK there are no specific provisions on trade secrets in civil law. Trade secrets are only protected by contract in Cyprus, while in France misappropriation of manufacturing secrets is a criminal offence if committed by employees.

The Commission says that the new proposal will align the rules in the EU with civil law rules in Japan and the US.

The draft directive will now go before the Council of Ministers and the European Parliament for adoption.

more from across site and ros bottom lb

More from across our site

Firms explain how they question jurors and account for potential bias in trade secrets cases
A meeting between the EPO and Ericsson, Paul McCartney weighing in on AI and copyright, and a law firm’s STEM pledge were among the top talking points
National courts could combat inconsistencies over the speed of judgments – and provide parties with much-needed certainty – by looking to the UPC
Sources in four jurisdictions discuss the downsides of delayed judgments and why they prefer a well-reasoned, late finding, over a quick ruling that lacks substance
Counsel discuss how likely SCOTUS is to remand closely watched trademark case, which centres on the principle of corporate separateness
Partners at Baker Botts explain why oral arguments were a crucial factor in convincing the Federal Circuit to affirm a lower court ruling
The operator hopes to capitalise on significant market opportunities presented by evolving voice technologies
Hurtado Rivas is general counsel for brands and marketing properties, anti-counterfeiting and licensing at Nestlé in Switzerland
Stelling is a co-founder of Brand Action
Gift this article