Trade Secrets

– Law No. 30 of 2000 on Trade Secrets, effective since December 20, 2000.

Membership in International Conventions

– WTO's TRIPS Agreement, by virtue of Law No. 7 of 1994.

Protection

Definition: a trade secret means information (a) that is not known by the public in the field of technology and/or business; (b) that has economic value as it is useful in business activities; and (c) the confidentiality of which is maintained by its owner.

Scope of protection: the scope of trade secrets protection covers the methods of production, methods of processing, methods of selling, or other information in the field of technology and/or business that has economic value and is not known to the public. The protection of trade secrets shall be given if the information concerned is confidential, has economic value, and its confidentiality has been maintained with the necessary efforts.

Rights of the owner of the trade secret: the owner of the trade secret has the right: (a) to personally use her/his trade secret; (b) to grant a license to another party or to prohibit other parties to use his/her trade secret or to disclose trade secret to any third party for commercial purpose.

Transfer of Right and Licence Agreement

Transfer of right: the right to a trade secret may be transferred by: (a) inheritance; (b) donation; (c) testament; (d) written agreement; or (e) other reasons recognized by law. A transfer of rights of the trade secret must be recorded at the Directorate General. Any transfer of right that is not recorded at the Directorate General shall not have any legal effect to any third party.

License: means permission granted by the right holder of the trade secret to another party by means of an agreement based on the grant of the right (not the transfer of the right), to enjoy the economic benefit of a trade secret, which is granted a protection for a given period of time and with certain requirements.

Recordation of license agreement: a license agreement shall be recorded at the Directorate General of Intellectual Property Rights. Any licensing agreement that is not recorded at the Directorate General of Intellectual Property Rights shall not have any legal consequences to any third party. The license agreement as referred to above shall be announced in the Official Gazette of Trade Secret. The transfer of right or license agreement is recorded at the Directorate General only for administrative data, and not for the substance of the trade secret.

Infringement: takes place (1) when a person deliberately discloses the trade secret or breaks the agreement (breach of contract), or the obligation, either written or not, to maintain the confidentiality of the relevant trade secret; (2) whereas a person obtains or possesses the trade secret in a manner that is contrary to the prevailing laws and regulations.

Settlement of disputes: the holder of the right to a trade secret or the licensee may bring a lawsuit before the District Court against any person who deliberately and without rights has personally used the trade secret belonging to the owner of the trade secret, and has granted a license to another party or has prohibited other parties to use his/her trade secret or has disclosed the trade secret to any third party for commercial purposes. This lawsuit may be in the form of (a) claiming for damages, and (b) ceasing of all of the relevant acts.