EU set for harmonised rules on trade secrets

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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 SHARED ros bottom lb

More from across our site

The four-partner addition includes A&O Shearman’s former co-head of global IP litigation
A settlement involving Disney and another ruling concerning a lawyer’s request for access to documents were also among the big developments
Merchant & Gould's managing partner explains why the firm launched a Boston office and why it brought on board a local boutique
The model covers court-guided settlements, submissions-led determination of infringement and validity issues, and provides leeway for the court to determine a FRAND rate during negotiations
Tie up between Belgium-based firms will create an outfit with almost 30 UPC representatives, and a tier one-ranked patent disputes team
Blank Rome’s launch in West Palm Beach, marked by the arrival of two IP partners, comes in response to rising demands from technology clients
Abion says it has brought on board Matt Serlin as its first US hire to meet client demand for ‘full circle’ trademark and domain name services
News of Health Hoglund joining Sisvel and the Delhi High Court staying a $2.2 million decree in favour of Philips were also among the top talking points
The firm is continuing its aggressive IP hiring streak with the addition of partner Matthew Rizzolo
Pantech counsel Shogo Matsunaga speaks exclusively to Managing IP about how his team proved Google’s unwillingness, and ultimately secured a landmark SEP settlement
Gift this article