The European Commission has announced the launch of a consultation on the protection of business and research know-how.
This consultation follows the Commission's report earlier this year on trade secrets and parasitic copying (lookalikes), and is part of a wider investigation into the protection of intellectual property rights and innovation across the EU. The protection of valuable business information is often the only or most effective way a business can protect its intellectual property. Whilst patents can provide sufficient protection, they do have their limitations and are not available in all circumstances; particularly at the early stages of product research and development. Research carried out by DMH Stallard in the manufacturing sector supports these concerns (http://ec.europa.eu/internal_market/consultations/2012/trade-secrets_en.htm).
The misuse of confidential information can be calamitous for a business and it is often difficult to secure swift legal redress without overcoming a number of practical and procedural hurdles.
With this in mind, the Commission is currently reviewing the ways in which Member States currently protect such information, and deciding whether greater harmonisation is required (which we expect and hope it will). Many presently feel these variances and the lack of a sufficiently strong deterrent against the theft of confidential information is having a negative effect on the sharing of information across Member States. This could be stifling the development of innovation and the willingness of parties to share confidential information across borders to develop new products and gain greater market access.
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.