Commission to adopt proposals on protection of trade secrets

On 27 November the European Commission will adopt a proposal for a directive on the protection of trade secrets and confidential business information from misappropriation and misuse by third parties.

The aim of the proposal is to harmonise national laws on protecting against misappropriation of trade secrets by establishing a common definition and ensuring that in cases of unlawful acquisition, use or disclosure of a trade secret, a sufficient and comparable level of redress across the EU is provided.

Background

Under the flagship initiative Innovation Union, one of the pillars of the EU 2020 Strategy, the Commission undertook to create an innovation-friendly environment. Within this framework, the Commission has adopted a comprehensive strategy to ensure a smooth functioning of the internal Market for intellectual property, which also reaches areas complementary to intellectual property rights (IPRs) such as trade secrets.

Every company, large or small, in any sector uses confidentiality to gain a competitive advantage, in particular when based on knowledge and innovation. Trade secrets are the source of any first mover advantage. Valuable information that cannot be protected by exclusive rights, such as patents, will only confer its creator with an advantage over competitors if and to the extent that it is not generally known and it is kept confidential.

However, companies are increasingly exposed to dishonest practices (such as economic espionage, theft, unauthorised use and disclosure of confidential information), which impact their knowledge capital and competitiveness. Furthermore, there are important differences between the levels of protection offered across the EU for defending trade secrets against unfair practices.

Trade Secrets and Confidential Business Information.

Commissioner Michel Barnier's website.

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