Search about trade secrets in Portugal

Protecting trade secrets is a core factor for businesses in general and companies in Portugal in particular to maintain a competitive advantage in an increasingly fierce market. Exclusive information, production know-how or unique recipes are not only valuable intangible assets but also the key for businesses to create unique products and services, attract customers and grow sustainably. The protection of trade secrets helps businesses prevent unfair competition, protect investment and build brand reputation. However, Portuguese businesses also face many challenges such as information leaks, unfair competition, and cyberattacks. Therefore, building a comprehensive security system, from raising employee awareness to adopting modern security technologies, is extremely necessary. Viet An Law would like to provide you with a preliminary guide on how to protect trade secrets in Portugal through the article below.

Learn about the definition of trade secrets in Portugal

Under Portuguese law, a trade secret is defined as any information or knowledge, including technological, scientific, industrial, commercial, organizational or financial information, that meets the following criteria:

• Confidentiality: The information is not widely available or easily accessible to people who regularly work with that type of information.
• Commercial Value: The information must have an accurate actual or potential economic value because it is confidential.
• Reasonable safeguards: The owner of the information must have taken reasonable steps to keep the information confidential.

Exceptions that are not considered trade secrets

• Public Information:
  • The information has been widely published in the media, public documents, or through the normal business activities of the enterprise.
  • General knowledge in the industry, technical information published in specialized journals.
• Information is easy to collect: Information can be easily obtained from public sources such as books, newspapers, the internet, or through direct observation of business activities.
• Information that has no commercial value: Information that does not provide a competitive advantage to the business, has no economic value, or cannot be used to generate profits.
• Personal Information: Personal information of employees, customers, and partners is not a trade secret, but falls under the protection of personal data protection laws.
• Information related to national security: Information related to national defense and security is not protected as a trade secret.

Some examples of trade secrets and non-trade secrets

• The Coca-Cola formula is a trade secret because it is strictly protected and brings huge profits to the company.
• The design of a popular smartphone is not a trade secret because it has been widely publicized and easily copied.
• A real estate company’s customer list can be considered a trade secret if the company has taken reasonable safeguards. However, if this list is made public on the company’s website, it will no longer be a secret.

Learn about the process of protecting trade secrets in Portugal

Clearly define trade secrets

• Cataloging: Lists in detail what information is considered a trade secret in the business.
• Decentralization: Classify information according to sensitivity to apply appropriate protections.

Implement security measures

• Physical Security:
  • Restrict access: Only allow authorized people to enter the area where confidential information is stored.
  • Secure Storage: Use safes, locked filing cabinets, or other secure storage methods.
  • Guest management: Strictly control the entry and exit of outsiders.
• Security Number:
  • Strong passwords: Apply complex and frequently changing password policies.
  • Encryption: Encrypt sensitive data to prevent unauthorized access.
  • Security software: Use firewalls, antivirus software, and other security tools.
  • Backups: Regularly back up your data and store it in a safe place.
• Human Security:
  • Confidentiality contract: Require all employees and contractors to sign a confidentiality contract.
  • Training: Organize training courses on information security for employees.
  • Background Check: Double-check a new employee’s background before hiring.
• Legal Protection
  • Register intellectual property rights: If possible, register patents, trademarks, or copyrights to protect specific aspects of the product or service.
  • Contracts: Use contracts to bind stakeholders (customers, suppliers, partners) not to disclose confidential information.

Some related questions about the protection of trade secrets in Portugal

How long can trade secrets be protected?

• There is no specific, fixed protection period for trade secrets in Portugal (and most other countries).

Do trade secrets have to be registered with state agencies?

• No, in Portugal (and most other countries), trade secrets do not need to be registered with any state agency to be protected.