EU set for harmonised rules on trade secrets

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

EU set for harmonised rules on trade secrets

The European Commission has today proposed a directive on trade secrets to replace the patchwork of rules across the EU

The draft directive introduces a common definition of trade secrets, sets out procedures for victims of trade secret misappropriation to seek redress and introduces measures that courts may use to avoid leakage of trade secrets submitted to it in the course of civil litigation on trade secrets theft.

The proposed rules come after officials in Brussels commissioned a study and held a public consultation on the issue. It concluded that businesses find it hard to understand the rules on trade secrets across the EU and are reluctant to sue alleged infringers for fear that the courts will not keep their trade secrets confidential.

The Commission says that one in five European companies has been the victim of trade secret misappropriation, or attempts at misappropriation, at least once in the past 10 years.

Vice-President Antonio Tajani said that protecting trade secrets is particularly important for smaller businesses, which rely more heavily on trade secret protection than larger companies – in part because of the cost of patenting and protection against infringement.

At the moment, 18 EU member states have laws on misappropriation of trade secrets, although some, including Germany and Spain, do not define what trade secrets are. In Belgium, France, Ireland, Luxembourg, Malta, the Netherlands and the UK there are no specific provisions on trade secrets in civil law. Trade secrets are only protected by contract in Cyprus, while in France misappropriation of manufacturing secrets is a criminal offence if committed by employees.

The Commission says that the new proposal will align the rules in the EU with civil law rules in Japan and the US.

The draft directive will now go before the Council of Ministers and the European Parliament for adoption.

more from across site and SHARED ros bottom lb

More from across our site

Attorneys explain why there are early signs that the US Supreme Court could rule in favour of ISP Cox in a copyright dispute
A swathe of UPC-related hires suggests firms are taking the forum seriously, as questions over the transitional stage begin
A win for Nintendo in China and King & Spalding hiring a prominent patent litigator were also among the top talking points
Rebecca Newman at Addleshaw Goddard, who live-reported on the seminal dispute, unpicks the trials and tribulations of the case and considers its impact
Attorneys predict how Lululemon’s trade dress and design patent suit against Costco could play out
Lawyers at Linklaters analyse some of the key UPC trends so far, and look ahead to life beyond the transition period
David Rodrigues, who previously worked at an IP boutique, said he may become more involved in transactional work at his new firm
Indian smartphone maker Lava must pay $2.3 million as a security deposit for past sales, as its dispute with Dolby over audio coding SEPs plays out
Powell Gilbert’s opening in Düsseldorf, complete with a new partner hire, continues this summer’s trend of UPC-related lateral movement
IP leaders at Brandsmiths and Bird & Bird, who were on opposing sides at the UK Supreme Court in Iconix v Dream Pairs, unpick the landmark case and its ramifications
Gift this article