30 May 2016

Trade secrets protection: Council adopts new directive

Mobility of employees

The directive will not impose any restrictions on workers in their employment contracts, where national law will continue to apply. 

Therefore there will be no limitation to employees' use of the experience and skills honestly acquired in the normal course of their employment. 

Furthermore, the autonomy of social partners and their rights to enter into collective agreements will not be affected by the implementation of the new conditions. 

Whistle-blowers

Persons acting in good faith that reveal trade secrets for the purpose of protecting the general public interest, commonly known as “whistle-blowers”, will enjoy adequate protection. It will be up to national competent judicial authorities to judge whether the disclosure of a commercial secret was necessary to denounce a misconduct, wrongdoing or illegal activity. 

Compensation to trade secret holders

In accordance with the new legal framework, EU member states will have to provide for the measures, procedures and remedies necessary to ensure the availability of civil redress against illegal acquisition, use and disclosure of trade secrets. 

These will have to be fair, effective and dissuasive. Not unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted delays. The limitation period for claims will not exceed six years. 

Trade secret holders will be entitled to apply for remedies in case of damages following cases of illegal appropriation of documents, objects, materials, substances or electronic files containing the trade secret or from which the trade secret can be deduced. 

Where necessary, confidentiality of trade secrets will also be preserved during the course of and after the legal proceedings. 

Directive on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure

© European Council