New requirements concerning trade secrets

2018.10.01

Trade secret is technical, technological, organizational or other information which has economic value and which is not universally known to persons who usually deal with type of information, or is not easily accessible to such persons, provided that the entity to whom the information applies has acted with due diligence to keep it confidential.

In the light of the new provisions, information will not be considered a trade secret if it is not appropriately protected. Until now, entities were also required to protect such information appropriately, but the regulations did not specify how. Now, an entity that aims to protect information that constitutes a trade secret is required to protect it with due diligence.

A business entity should apply means that will truly reduce the possibility of an information leak, for instance by stamping documents with a “Confidential” seal, giving the documents appropriate titles, defining a confidential information file, protecting documents and confidential information physically against access by unauthorized individuals. If such due diligence has not been followed, the employee or another person may attempt to avoid the consequences of their use of confidential information by accusing the company of overly loose information access policy.