Guide to protecting trade secrets in Cambodia

Protecting business secrets in Cambodia plays an extremely important role in promoting the sustainable development of businesses and the economy. For businesses, trade secrets are a valuable intangible asset, the key to creating competitive advantages, attracting investment and protecting against unfair competitive behaviors. Thanks to effective protection, businesses will be motivated to invest in research and development, create new products and services, contributing to improving the competitiveness of the economy. For Cambodia, the protection of trade secrets will attract foreign investment, promote innovation and enhance the country’s position in the international arena. Viet An Law would like to guide customers on how to protect trade secrets in Cambodia through the article below.

A Preliminary Guide to Trade Secrets in Cambodia

The concept of business secrets in Cambodia

A trade secret is confidential information, which is not known or easily accessible by people who regularly work with that type of information, such as recipes, manufacturing processes, or any information that has commercial value because of its confidentiality.

Basic information about business secrets in Cambodia

Cambodia’s Intellectual Property Law stipulates the conditions under which information is considered a trade secret. To be considered a trade secret, information must meet the following requirements:

• The information must be confidential (i.e., not known or easily accessible by people who regularly work with that type of information);
• The information must have commercial value; and
• The information owner must take reasonable measures to keep the information confidential.

Information that cannot be protected as a trade secret includes personal secrets, state and state administrative secrets, and other confidential information that is not related to business.

Rights of the owner of a trade secret

Article 60 of the Intellectual Property Law stipulates that the owner of trade secrets has the following rights:

• It is strictly forbidden to disclose, acquire or use trade secrets by others without the consent of the owner, in a manner contrary to honest commercial practice, except in the following cases:
  • Discovering information by reverse engineering, laboratory testing, analysis, or other similar means; or
  • Acquisition of information without a duty of confidentiality or trust;
• Protect trade secrets against infringement by initiating lawsuits and claiming damages due to infringement;
• Prevent the illegal appropriation of business secrets;
• Disclose, withdraw, use or transfer trade secrets to others; and
• Control any person who is legally controlling trade secrets from employment, contracts, or other agreements.

In addition, the obligation of confidentiality will remain in effect as long as the information remains confidential, even if the employment, contract, or other agreement terminates earlier.

Specific guidance on acts of infringing upon the protection of trade secrets in Cambodia

According to the provisions of the Intellectual Property Law in Cambodia, the infringement of trade secrets is an illegal act, causing damage to the interests of business secret owners. Here are some typical behaviors that are considered infringing:

• Illegal disclosure of trade secrets:
  • Disclosure to unauthorized persons: Disclosure of confidential information to persons who have no right to know or a duty of confidentiality is considered infringement.
  • Disclosure of information in case of unauthorized use: Disclosure of confidential information during employment, after resignation, or in any other case without the permission of the owner.
• Unauthorized use of trade secrets:
  • Use of information for production and business: The use of confidential information for production and trading of similar products or services without the permission of the owner.
  • Disclosure of information to competitors: Providing confidential information to competitors to the detriment of the business that owns the information.
• Illegally appropriating business secrets:
  • Copying information: Unauthorized copying of confidential information in any form.
  • Unauthorized Harvesting: Using unauthorized methods to collect confidential information, such as eavesdropping, break-in, or bribery.
• Other acts:
  • Falsifying trade secrets: Creating fake information and claiming it as one’s trade secret.
  • Unfair competition: Using confidential information that is known illegally to compete unfairly with competitors.

Guidance on measures to protect trade secrets in Cambodia

Protecting trade secrets is an important issue for every business, especially in the context of today’s increasingly fierce competition. In Cambodia, in order to effectively protect business secrets, businesses need to combine many different measures, including:

Legal measures

• Registration of protection: Although trade secrets are not registered for protection such as patents and trademarks, the registration of other intellectual property objects related to trade secrets (such as software copyrights, industrial designs) can contribute to the protection of part of confidential information.
• Sign a confidentiality contract: Sign a confidentiality contract with employees, partners, and suppliers to bind information security responsibilities. The contract should clearly stipulate the obligations and powers of the parties involved, as well as sanctions for handling violations.
• Initiating a lawsuit: When detecting infringement, businesses need to actively collect evidence and initiate a lawsuit to protect their rights.

Technical measures

• Access management system: Establish a strict access management system to confidential information, granting access only to those who really need it.
• Data encryption: Data encryption to protect information from unauthorized access.
• Firewalls and antivirus systems: Use firewalls and antivirus software to protect computer systems from external attacks.
• Back up your data: Back up your data regularly to prevent data loss due to technical issues or natural disasters.

Internal management measures

• Raising awareness: Organizing training sessions and seminars to raise employees’ awareness of the importance of protecting trade secrets and related regulations.
• Build a culture of security: Build a culture of security in your business, encouraging employees to report any suspected breaches.
• Build secure workflows: Establish clear, detailed workflows to ensure information is tightly managed.