Trade secrets in Indonesia under Trade Secrets Law No. 30

The protection of trade secrets in Indonesia plays an extremely important role, especially in the context of increasingly fierce economic competition and the strong development of digital technology. Protecting trade secrets is not merely a preventive measure, but also a core factor for businesses to maintain a competitive advantage. This exclusive information is a “treasure” that helps businesses differentiate themselves in the market, attract investment and promote growth. If business secrets are not protected, there will be many bad cases, competitors can take advantage of the leaked information to produce similar or better products, causing serious damage to revenue. In addition, the disclosure of business secrets will reduce the reputation of businesses in the market, making it difficult to cooperate with other partners. Therefore, Viet An Law would like to guide customers on how to protect trade secrets in Indonesia through the article below.

Definition of Trade Secrets in Indonesia under Trade Secrets Law No. 30

According to Indonesia’s Trade Secrets Law No. 30 of 2000, a trade secret is defined as:

• Information in the field of technology and/or business
• Not made public
• Economically valuable
• Kept secret by the owner

This information can include many business-related factors such as:

• Production Process
• Sales Methodology
• Marketing Strategy
• Customer List
• Financial Data
• Research and development results

It is important to note that trade secrets are protected by law in Indonesia, but the protection is based on maintaining confidentiality. Unlike patents or trademarks, there is no formal registration process for trade secrets.

Difference Between Trade Secrets and Other Forms of Intellectual Property in Indonesia

Acts of infringing on the protection of trade secrets in Indonesia under the Trade Secrets Law No. 30

Violation of trade secret protection is an act of infringing upon the legitimate rights of information owners, causing economic and reputational damage. In Indonesia, these violations can be criminally or civilly prosecuted depending on the severity and damage caused.

Disclosure of confidential information to others

• Intentional: Disclosing information to competitors or partners who are not authorized.
• Unintentional: Due to negligence, carelessness in preserving information.

Unauthorized use of confidential information

• Production and trading of products: Using confidential information to produce and trade competitive products.
• Provision of services: Provision of similar services based on confidential information of competitors.

Copy confidential information

Copying in whole or in part: Reproducing information for personal or commercial use.

Buying, selling, exchanging confidential information

• Buying and selling information: Buying confidential information from someone who does not own it.
• Exchange of information: Exchange of confidential information for profit.

Collecting confidential information without permission

• Stealth Collection: Using illegal methods to collect information, e.g. eavesdropping, breaking in.

Legal consequences:

• Criminal: For serious violations, violators may be examined for penal liability, facing penalties such as fines and imprisonment.
• Civil: The victim has the right to claim compensation for damages, including direct and indirect damages.
• Other measures: The court may issue a decision prohibiting the violator from continuing the violation, forcibly destroying the infringing product.

How to protect trade secrets in Indonesia under the Trade Secrets Law No. 30

To effectively protect business secrets in Indonesia, businesses need to combine various measures, including legal and technical measures. Here are some common methods:

Legal measures

• Copyright registration: Although there are no specific regulations on registration of trade secrets, businesses can register copyrights for documents, software, and designs related to trade secrets to protect part of the information.
• Confidentiality contracts: Sign confidentiality contracts with employees, partners, and suppliers to bind them to the obligation to keep information confidential.
• Litigation: If a business secret is disclosed or used illegally, the enterprise can initiate a lawsuit to claim compensation for damages and request an end to the violation.

Technical measures

• Access Management System: Restrict access to confidential information to only those who need it.
• Data encryption: Encrypt sensitive data to prevent unauthorized access.
• Firewall and intrusion prevention system: Protect the internal network from external attacks.
• Data backups: Back up your data regularly to prevent data loss.
• Security software: Use antivirus software, intrusion detection to protect the system.

Organizational measures

• Raise awareness: Organize information security training courses for employees to raise awareness of the importance of protecting business secrets.
• Build workflows: Develop clear, detailed workflows for processing, storing, and sharing confidential information.
• Internal audits: Perform periodic internal audits to detect and remediate security vulnerabilities.

Note: Protecting trade secrets is an ongoing process and requires a long-term investment. Businesses need to regularly evaluate and adjust protective measures to adapt to the actual situation.