Trade secrets in Panama

The protection of trade secrets in Panama plays an extremely important role in the success and development of businesses. In today’s highly competitive business environment, information is the most valuable asset. Trade secrets, from unique production formulas to innovative business strategies, are the factors that create competitive advantages and help businesses stand out in the market. Protecting trade secrets not only helps businesses maintain their leading position but also prevents unfair competition, protects investment, and encourages innovation. In Panama, although the legal system on trade secret protection is not as mature as some other countries, it is essential to proactively implement protection measures to ensure the safety of the intellectual property of enterprises. Viet An Law would like to guide customers on how to protect trade secrets in Panama through the article below.

Definition of trade secrets in Panama

Trade secrets in Panama, similar to many other countries, are any information that has economic value due to its confidentiality and is not widely publicized. This can be the production formula, business process, customer list, marketing plan, etc or any other proprietary information that the business uses to create a competitive advantage. The characteristics of a Trade Secret include the following characteristics

• Uniqueness: The information must be unique and cannot be easily obtained through legal means.
• Confidentiality: The information must be thoroughly protected by the owner, not publicly available or easily accessible.
• Economic value: Information must create a competitive advantage for businesses.

Infringement of trade secret protection in Panama

Disclosure of confidential information

• Disclosure of information when transferring jobs to a rival company.
• Taking advantage of confidential information to compete unfairly.
• Disclosure of information to third parties for profit.

Unauthorized copying

• Copy the design and production formula of the product.
• Copy all or part of the production process.
• Copy proprietary software.

Technical Reversal

• Disassemble the product to learn the structure and production technology.
• Analyze the source code to understand the algorithm and structure.

Unfair competition

• Bribing rival employees to steal information.
• Gathering information from public or unofficial sources to reproduce a product or service.
• Spreading false information about competitors’ products or services to discredit them.

Economic espionage

• Infiltrate an opponent’s computer system to steal data.
• Using personal relationships to steal information.

Exceptions to the infringement of trade secrets

Independent Discovery

• Scientific research: Scientists can discover a similar formula or process through independent research, which is not based on any confidential information they already knew before.
• Independent Creation: An individual can create a similar product or service based on his or her knowledge and experience, without even knowing the existence of that trade secret.

Public Information

• Patent: If the information has been copyrighted or made publicly available, it is no longer a trade secret.
• Published Information: If the information has been leaked and widely published in the media, it is also no longer protected.

Legitimate use in the course of research

• Competitive research: Companies can conduct research on competitors’ products and services to improve their products. However, this must be done within the legal scope and not violate any regulations.
• Academic research: Academic researchers can use public information for scientific research purposes.

Disclosure required by law

• Criminal investigations: In some cases, trade secret information may have to be disclosed in order to serve as a criminal investigation.
• Regulations of state agencies: State agencies have the right to request enterprises to provide information in certain cases.

Legal use in the course of work

• Employees can use confidential information within the scope of their work, but must not disclose it to the outside.

Trade secret protection in Panama

Legal measures

• Non-disclosure agreements (NDAs): Sign NDAs with employees, partners, suppliers, and anyone who has access to confidential information. The NDA will clearly stipulate the parties’ confidentiality obligations.
• Internal Regulations: Develop internal regulations on information security, including information processing procedures, access grants, and breach handling measures.
• Use of Intellectual Property Law: While there is no specialized law on trade secrets, Intellectual Property Law can be used to protect certain types of confidential information, such as formulas, designs, or manufacturing processes.

Technical measures

• Information security systems: Invest in network security systems, antivirus software, and firewalls to protect data from unauthorized intrusion.
• Data encryption: Encrypt sensitive data to prevent unauthorized access.
• Access management: Restrict access to systems and data to only those who need it.
• Back up your data: Back up your data regularly to prevent data loss due to technical issues or natural disasters.

Management measures

• Raise awareness: Organize training sessions to raise awareness of information security for all employees.
• Physical Control: Protect paper documents and information storage devices by physical measures such as locks, iron cabinets, surveillance cameras.
• Risk assessment: Regularly assess possible risks and develop response plans.
• Security audits: Perform periodic security audits to identify and remediate vulnerabilities.

Organizational measures

• Decentralize access: Divide access to information according to employee hierarchy and function.
• Document Flow Control: Establish a strict control process for the creation, storage, distribution, and destruction of documents.
• Build a culture of security: Create a corporate culture that values information security.