Dutch law
By June 9, 2018, the EU Trade Secrets Directive ("trade secrets") should have been transposed into Dutch law, among other things. The Netherlands did not transpose the Directive on time. Since June 9, the rules of the Directive already apply directly. The
Dutch Trade Secrets Protection Act entered into force on Oct. 23, 2018.
Key points
The EU Trade Secrets Directive provides the right to take action against the unlawful acquisition, theft, use or disclosure of illegally obtained trade secrets.
It also contains legal tools to protect confidential information during court proceedings.
Now more than ever, it makes sense and is critical to identify and properly manage your trade secrets in order to invoke the new regulation.
What is a trade secret?
The Directive introduces an EU-wide definition of "trade secret," that is:
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information that is secret;
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has commercial value because it is secret; and
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is subject to reasonable measures to keep it secret.
Exemptions
The work of journalists and disclosure by whistleblowers (provided they are acting in good faith to protect the general public) are exempt under certain conditions.
Nor does the Directive place any restrictions on the use by employees of their experience and skills honestly acquired during their employment.
Damages
The new regulation allows victims of theft or misuse of trade secrets to defend their position in court and seek damages.
De Richtlijn stelt minimumeisen, zodat elke lidstaat kan kiezen voor verdergaande bescherming tegen het onrechtmatig verkrijgen, het onrechtmatig gebruik of onrechtmatige openbaarmaking van bedrijfsgeheimen, zolang het de in de Richtlijn neergelegde waarborgen maar respecteert.
Key points
Below we provide some tips:
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Inventory your trade secrets and select your crown jewels.
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Determine what your mission-critical trade secrets are.
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Physically archive: store documentation (and/or e.g. software source code) in a safe or - even better - deposit a copy with a third party (e.g. notary).
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Archive digitally: create an encrypted version and store it securely, preferably in a reliable external digital vault (e.g., i-Depot).
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Determine who has access to the documentation.
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Implement appropriate security policies; including access restrictions, ban on taking photos.
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Create separate R&D areas (both physical and digital), lock down your R&D areas and restrict access.
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NDAs (non-disclosure agreements) - and if possible, restrictions on competition - with partners, suppliers and customers.
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Secrecy obligations - and if possible, restrictions on competition - in employment agreements with your staff.
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Include relevant trade secrets in your exit interviews with staff.
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Hiring competitor's staff: beware and point out that he or she is not using competitor's trade secrets.
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Consider the definitions and terms of the Directive when drafting contracts.
How should all this be done?
Eén en ander vereist nauwe samenwerking met advocaten die bekend zijn met kennisintensieve, innovatieve bedrijven en beschikken over kennis en ervaring op het gebied van intellectuele eigendom. Trade secrets zijn immers nauw verwant aan IP. Bijkomend voordeel is dat advocaten een wettelijke geheimhoudingsplicht hebben.
We can work with you to determine the necessary steps, tailored entirely to your business and company size. Would you like to discuss this? Then please contact
Ernst-Jan Louwers.
