As the Trade Secrets Directive moves closer to enactment, we look at it in more detail.
What's the issue?
Last month we reported that the Trade Secrets Directive (TSD) had been adopted by the European Parliament, moving it significantly closer to finalisation.
What's the development?
The EU Council has now approved the TSD. Once the formality of publication in the Official Journal has taken place, EU Member States will have two years to introduce implementing legislation.
What does this mean for you?
The UK may consider that the provisions of the TSD are already satisfied by existing laws, with the result that little, if any, extra legislation is needed. Expect these issues to be discussed in the months to come.
However, the concept of a Directive harmonising trade secrets law appears broadly welcome and will confer benefits on businesses in a variety of ways, including greater certainty of protection. More harmonised laws in Europe should help give businesses greater certainty when sharing information under terms of confidence and prevent others from misusing trade secrets and confidential information. Harmonisation may also assist in the alleviation of information leaks and the resulting disputes caused where former employees use information they have picked up at their previous workplace, particularly in today's increasingly mobile employment market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.