Protection of Trade Secrets in Italy

Protecting business secrets in Italy is not only a legal obligation, but also a vital factor for the survival and development of a business. According to a recent study, Italian businesses have suffered billions of euros in losses each year due to activities that violate trade secrets. This shows the urgent importance of strengthening the protection of this intellectual property. To do that, businesses need to build a strict security management system, raise employees’ awareness of the importance of trade secrets and work closely with the authorities to strictly handle violations. Viet An Law would like to guide customers on the protection of trade secrets in Italy through the article below.

Information about business secrets in Italy

Italy has its own legal system for the protection of trade secrets. Specifically, under Italian civil law, business information can be protected in two main forms:

• Trade secrets in the true sense of the word: Stipulated in Articles 98 and 99 of the Intellectual Property Code, in accordance with the EU Trade Secrets Directive.
• Confidential information: Applies when the information does not fully meet the conditions to become a business secret in the true sense but is still protected by law from unfair competition.

Choosing the right form of protection depends on many factors, including the nature of the information, the level of security, and the protection measures that the business has implemented. Each form of protection will have different regulations and legal measures. Therefore, to ensure maximum protection for their business secrets, businesses need to understand the relevant legal regulations and choose the most appropriate form of protection.

Legal Basis for Protecting Trade Secrets in Italy

Prior to the adoption of the EU Trade Secrets Directive, Italy had legal provisions to protect trade secrets through Articles 98 and 99 of the Intellectual Property Code.

Accordingly, trade secrets are defined as information that is commercial, technical or industrial, has economic value and is reasonably confidential by the owner. To be protected, this information must meet strict criteria of confidentiality and economic value.

When recognized as a trade secret, this information enjoys the same protections as other intellectual property rights. The owner has the right to prevent violations such as unauthorized use, disclosure or misappropriation of information. Italian law also provides for effective protections, including emergency measures and damage remedies.

The implementation of the EU Trade Secrets Directive has further supplemented and strengthened the trade secret protection regulations in Italy. Some notable new features include:

• Expanded Protection: Protection is not only for the person who directly appropriates the information, but also for those who knew or should have known that the information was illegally collected.
• Prohibition of production and consumption of infringing products: Products manufactured based on stolen confidential information will be banned from circulating on the market.
• Enhanced security: Confidential information is more closely protected during the proceedings, ensuring confidentiality even when the case is being tried.

Violations of trade secret protection in Italy

According to the Italian Civil Code, especially Article 2598 paragraph 3 and regulations related to intellectual property, violations of trade secret protection are generally defined as acts that are inconsistent with the principles of fair competition and cause damage to other businesses.

Here are some typical violations:

• Unauthorized Use of Confidential Information: Includes the use of information without the owner’s permission, whether directly or indirectly.
• Disclosure of confidential information: Disclosure of confidential information to third parties without the consent of the owner is also a violation.
• Misappropriation of confidential information: This behavior may include copying, falsifying, or stealing confidential information.
• Exploiting confidential information for unfair competition: Using confidential information to gain an illegal competitive advantage, such as lowering selling prices, developing new similar products, or attracting competitors’ customers.
• Other acts that cause damage to the business: Other acts that can cause damage to the business, such as reducing reputation, damaging reputation, or causing difficulties in business.

Conditions to be considered a violation:

In order for an act to be considered a violation of trade secret protection, the following conditions must generally be met:

• The information must be confidential: The information must be a trade secret, i.e. it has not been made public and has economic value.
• There is competition between the parties: The infringer and the owner of the information must be competitors.
• Causing damage or likely to cause damage: The violation must cause actual or potential damage to the injured enterprise.

A Guide to Protecting Trade Secrets in Italy

Establishing internal processes and policies is extremely important. These regulations not only clearly define what information is a trade secret, but also instruct employees on how to handle and protect this information.

• Identification and classification: Businesses need to clearly identify what information is confidential and classify them according to their importance.
• Restricted Access: Only employees who really need it are allowed access to confidential information. Limiting access helps minimize the risk of information leakage.
• Confidentiality agreements: When working with partners or suppliers, businesses should require confidentiality agreements to ensure that information is not disclosed to the outside world.
• Propaganda and training: Employee awareness of the importance of protecting trade secrets is crucial. Businesses need to organize training sessions to raise awareness for employees.
• Handling of violations: Enterprises need to take strict measures to handle cases of violation of regulations on protection of business secrets.

One of the effective ways to protect trade secrets is to adopt a “need to know” policy. Accordingly, only employees who are directly related to the work have access to the necessary information. This helps to minimize the possibility of information leakage.

However, protecting trade secrets is not always easy, especially in the face of competitors who are willing to use all tricks to steal information. Therefore, businesses need to continuously update and improve protection measures to ensure the safety of their intellectual property. Please contact Viet An Law for the best legal advice!