The new trade secrets act

Chan­ges brought about by the Trade Secrets Act

The pro­tec­tion of trade secrets is of enorm­ous importance for com­pa­nies. Until now, the only opti­ons available for pro­tec­ting trade secrets were essen­ti­al­ly the pro­vi­si­ons of the Unfair Com­pe­ti­ti­on Act (pri­ma­ri­ly Sec­tions 17–19 UWG) and, other­wi­se, gene­ral tort law (Sec­tions 823, 826 BGB, pos­si­bly in con­junc­tion with Sec­tion 1004 BGB).

With the Trade Secrets Act (GeschGehG) as the imple­men­ting law of Direc­ti­ve (EU) 2016/943 on the pro­tec­tion of con­fi­den­ti­al know-how and con­fi­den­ti­al busi­ness infor­ma­ti­on (trade secrets) against unlawful acqui­si­ti­on, use and dis­clo­sure, the Ger­man legis­la­tu­re has now respon­ded and estab­lished a uni­form set of rules for the pro­tec­tion of know-how and con­fi­den­ti­al trade secrets.

The scope of appli­ca­ti­on of the law can only be invo­ked under cer­tain con­di­ti­ons. Accor­ding to the­se con­di­ti­ons, a trade secret within the mea­ning of Sec­tion 1 I, Sec­tion 2 No. 1 GeschGehG must exist. A trade secret is defi­ned as ‘any infor­ma­ti­on that is secret (i.e., in short, neither gene­ral­ly known nor rea­di­ly acces­si­ble) and the­r­e­fo­re has com­mer­cial value and is sub­ject to reasonable con­fi­den­tia­li­ty mea­su­res by the per­son who has lawful con­trol over the infor­ma­ti­on.’ When deter­mi­ning whe­ther a con­fi­den­tia­li­ty mea­su­re is appro­pria­te, it is advi­sa­ble to con­sider the size of the com­pa­ny, the eco­no­mic signi­fi­can­ce of the trade secret and any con­trac­tu­al agree­ments with employees and busi­ness part­ners (see BT-Drucks. 19/4724, p. 25).

The core of the Trade Secrets Act is Sec­tion 4 GeschGehG. It regu­la­tes when a trade secret is obtai­ned, used or dis­c­lo­sed wit­hout aut­ho­ri­sa­ti­on. Sec­tion 4 II, No. 3 GeschGehG is of par­ti­cu­lar prac­ti­cal importance here: accor­ding to this, a breach of a con­fi­den­tia­li­ty agree­ment no lon­ger only has the legal con­se­quen­ces spe­ci­fied in the agree­ment, but is also a vio­la­ti­on of the law with the legal con­se­quen­ces of the GeschGehG. Other­wi­se, Sec­tion 4 GeschGehG pro­hi­bits the acqui­si­ti­on, use or dis­clo­sure of trade secrets, for exam­p­le in the case of unaut­ho­ri­sed access to docu­ments or files or in the case of con­duct that does not com­ply with the prin­ci­ple of good faith, taking into account decent mar­ket prac­ti­ces. The acqui­si­ti­on of a trade secret is per­mit­ted, for exam­p­le, if it was dis­co­ver­ed inde­pendent­ly or obtai­ned by obser­ving or test­ing a pro­duct wit­hout the per­son being sub­ject to an obli­ga­ti­on to rest­rict the acqui­si­ti­on of the trade secret. The acqui­si­ti­on, use or dis­clo­sure of a trade secret is jus­ti­fied if it is done to pro­tect a legi­ti­ma­te inte­rest, wher­eby Sec­tion 5 of the Trade Secrets Act pro­vi­des a non-exhaustive list of examp­les for this.

Important for practice

If the infor­ma­ti­on in dis­pu­te is a trade secret, its acqui­si­ti­on, use or dis­clo­sure is pro­hi­bi­ted and not jus­ti­fied, the defen­dant is the inf­ring­er and the clai­mant is the owner of the trade secret, the trade secret pro­vi­des for a com­pre­hen­si­ve cata­lo­gue of legal con­se­quen­ces. In addi­ti­on to claims for rem­oval, injunc­ti­ve reli­ef, infor­ma­ti­on and dama­ges, the­re are also claims for des­truc­tion, sur­ren­der, recall, rem­oval and with­dra­wal from the mar­ket, as well as other lia­bi­li­ty issues.

Howe­ver, com­pa­nies can only rely on the Trade Secrets Act if appro­pria­te con­fi­den­tia­li­ty mea­su­res have been taken. If com­pa­nies want to pro­tect their trade secrets effec­tively, they must take acti­ve pro­tec­ti­ve mea­su­res and demons­tra­te a legi­ti­ma­te inte­rest in con­fi­den­tia­li­ty, even though a sub­jec­ti­ve desi­re for con­fi­den­tia­li­ty was suf­fi­ci­ent under the old legal situation.

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