Comment
Many businesses across the EU will welcome the proposal for a directive on protection of valuable business information. While the proposal raises concerns that the current protection afforded to confidential information in the UK under common law exceeds that proposed by the directive, many will consider that harmonised trade secrets protection provides clarity and certainty for all EU Member States, allowing businesses to sharing information while pursuing business interests and providing the safeguards needed to prevent misuse of valuable trade secrets.
The EC hopes that the directive will encourage innovation, improve investment in EU businesses and improve conditions for the transfer of knowledge within the EU. The directive will need to be approved by the European Parliament and implemented by member states before it may become law.
Background
The proposal follows a recent European Commission ("EC") study on trade secrets which found inconsistencies in enforcement of laws across the European Union ("EU") and highlighted the fragmented and diversified nature of the existing protection against misappropriation of trade secrets in EU Member States.
The proposal
The proposal for a directive (which aims to create a minimum level of protection for trade secrets across the EU) includes the following:
(i) a definition of trade secrets and rules on their unlawful acquisition, disclosure and use;
(ii) measures, procedures and remedies that should be made available for civil law redress, including interim injunctions and precautionary seizure of infringing goods;
(iii) rules on the preservation of trade secrets during litigation; and
(iv) a two-year limitation period in which to bring claims.
Next steps
The EC's proposal will now be transmitted to the Council of Ministers and the European Parliament for adoption under ordinary legislative procedure. It is likely to be a year or possibly two before the proposal comes into force.
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