Protection & Management of Trade Secrets

Concept and Importance of Trade Secrets

Definition of Trade Secret

A commercial secret is non-public, valuable and confidential information that provides the holding company with a competitive advantage in the market. This information may include production processes, formulas, methods, techniques, business strategies, customer data and other information relevant to the company's operation.

Elements that Characterize a Trade Secret

For information to be considered a trade secret, it must meet three main criteria :

1. Have real or potential economic value, resulting from its secret nature.

2. Be kept confidential by the holders, with appropriate measures to preserve confidentiality.

3. Not be public knowledge or easily accessible to people who normally deal with this type of information.

Protection of Trade Secrets

The protection of commercial secrets is based on Industrial Property Laws which establishes measures to protect valuable information that is kept confidential by companies.

Industrial Property Law and Trade Secrets

Industrial Property Laws establish that the protection of commercial secrets occurs through the repression of unfair competition. Disclosure exploitation or use of industrial and, commercial secrets without authorization from the holder, constitutes unfair competition.

Protective Measures and Legal Actions in Case of Infringement

To protect trade secrets, companies must adopt internal security measures, such as drafting confidentiality agreements, restricting access to sensitive information and monitoring possible leaks. In addition, the company can use information security technologies to ensure data protection.

In case of violation of trade secrets, the company may take legal action against those responsible. The law provides for civil and criminal actions, such as compensation for damages and the application of criminal sanctions, such as fines and even imprisonment, depending on the severity of the case. The action must be proposed and the company may request precautionary measures to prevent the disclosure or undue exploitation of information.