Trade secret regulations in the UK

Trade secret in the UK are the most valuable IP asset that every business owns. They are proprietary information, carefully kept, which can be production formulas, unique and novel business processes to creative marketing strategies. It is these factors that have created a distinct mark, helping the business stand out among many competitors. Strictly protecting these secrets is not only a way for businesses to maintain their existence and sustainable development, but also a decisive factor in their success, improving their reputation and position in the market. However, not every country has separate legal provisions to protect trade secrets. Viet An Law would like to provide you with a preliminary guide on the regulations on the protection of trade secrets in the UK through the article below.

Legal Basis

The Trade Secrets Directive was issued and adopted in June 2018 with the aim of creating a more uniform and effective legal framework for the protection of trade secrets across the European Union. In the United Kingdom, the adoption of the Directive has brought about a new, broader definition of “trade secrets”, including information that has not been made public, has economic value, and has been subject to reasonable security measures by the owner.

Regulations on the definition of trade secrets in the UK

Trade secret means that the information meets all of the following requirements:

• Is confidential in the sense that it is not, as a whole or in the correct configuration and assembly of its components, is proprietary information, which is not widely disclosed in professional circles or easily accessible by those working in the field concerned;
• Commercially valuable because it is confidential;
• The owner has taken the necessary security measures to keep it confidential and prevent the disclosure of information to the outside world

Regulations on the storage of trade secrets in the UK

• List of trade secrets:
  • List in detail the information that is considered a trade secret, including: recipes, production processes, customer lists, business plans, etc.
  • A detailed description of the economic value of each type of information.
• Safeguards
  • Confidentiality Agreement: Agreement with employees, suppliers, partners, etc. regarding the confidentiality of information.
  • Access control: Clearly define who is allowed to access information and the level of access for each person.
  • Physical security: Safeguards such as locks, cameras, access control, etc.
  • Digital security: Data encryption, firewalls, strong authentication systems, and more.
  • Training: Information security training program for employees.
• Evidence of the implementation of protective measures:
  • Security logs: Record activities related to information access and editing.
  • Training Records: Demonstrate that employees have received security training.
  • Copies of confidentiality agreements.
  • Security audit report (if any).

Why do you need to keep trade secret records?

Archiving trade secrets is an extremely important tool for businesses, especially in the context of increasingly intense competition. Building, maintaining, and storing a complete and detailed set of records will bring many of the following benefits:

• Proof of confidentiality: Records are the clearest evidence that the business has genuinely treated the information as confidential and has taken the necessary safeguards.
• Strengthen legal protection: When there is a dispute, the dossier will be the basis for businesses to prove the ownership and confidentiality of the information, from which they can sue and claim compensation for damages.
• Provide evidence: The dossier will provide specific evidence that the enterprise has been infringed on intellectual property rights, helping the authorities have grounds to handle the case.

Regulations on the term of protection of trade secrets in the UK

Unlike other forms of intellectual property protection such as patents with a clear term, the term of trade secret protection in the UK is not limited by a specific time frame. This means that, as long as the information remains confidential, businesses can protect it indefinitely.

Why are trade secrets protected without a specific time?

• Specific characteristics of trade secrets: Trade secrets are information that is exclusive, not public, and brings a competitive advantage to businesses. The protection of trade secrets is based on the principle of maintaining the confidentiality of such information, not on a registration and licensing basis such as patents.
• Difficult to determine when it expires: There is no one specific formula for determining exactly when an information will lose its confidentiality. This depends on a variety of factors, including the speed at which the technology is evolving and how competitive it is in the market.

When does the protection of trade secrets end?

The right to protect trade secrets will terminate when:

• Information is made public: If information is leaked or made public, it loses its confidentiality and is no longer protected.
• Information becomes common knowledge: As information becomes popular and easily accessible, it will no longer be a trade secret.
• The enterprise waives the right of protection: The enterprise can actively waive the right of protection by disclosing the information.

Any inquiries about trade secret protection, please contact Viet An Law for further assistance!