What are the sanctions for disclosure of trade secret?

2018.10.01

The Act on Unfair Competition foresees an entire catalog of claims possible in the case of trade secret violations. In particular, business entities can demand that illegal practices be terminated or their effects be eliminated, or that the so-called public apology be issued.

The most obvious claim is repairing the damage done. However, when we consider practical aspects and evidence needs, pursuing such a claim may be most difficult in practice. The entity can also demand that unfairly obtained benefits be returned, and that an appropriate amount be paid to charitable causes (if the unfair competition act was culpable). In addition, the amendment has introduced the possibility of making the ruling public, and instead of a court order to stop the illegal acts and to pay compensation, the entity can demand the remuneration that would be payable in the case of an authorized use of the trade secret. Despite the expansion of the claim catalog, the most practical protection for a company is still a contractual penalty for illegal trade secret violation.