Remote work is currently the everyday life of many employees and employers, so the question of how the employer can protect and monitor the non-disclosure of his commercial secret under such circumstances has become important. Let's find an answer to this question!
A trade secret can significantly affect the company's value and development opportunities, because its unauthorized access to a competitor gives it economic advantages and is contrary to fair business practices. At the same time, as explained in the judgment of the Administrative Affairs Department of the Senate of May 17, 2010 in the case SKA-168/2010 and in the judgment of July 12, 2017 in the case SKA-29/2017, the holder of a trade secret must make reasonable efforts to protect the value at his disposal.
What is a trade secret?
The concept of a trade secret is defined in the Law on the Protection of Trade Secrets (KAL), which adopts the principles set out in Directive 2016/943 on the protection of know-how and business undisclosed information (trade secrets) against illegal acquisition, use and disclosure. KAL applies to any natural or legal person who has legal control over a trade secret or who has illegally obtained, used or disclosed a trade secret, thus also to employees.
According to KAL, Article 2, Part 1, a trade secret is undisclosed information of an economic nature, technological knowledge and scientific or other information:
- which is secret because it is not generally known or accessible to persons who normally use this type of information;
- that has actual or potential commercial value because it is secret;
- in respect of which the trade secret holder has taken appropriate and reasonable measures to preserve the secrecy of the trade secret.
On the other hand, KAL Article 3 sets out exceptions that cannot be considered a commercial secret, that is, a commercial secret is not information related to the performance of functions or tasks of the state administration, dealing with state or local government financial resources or property, as well as accounting information and data that, in accordance with according to regulatory enactments, can be included in the reports of natural or legal persons who perform economic activity. The provisions of the law regarding measures, procedures or legal remedies against the acquisition, use or disclosure of a trade secret do not apply to the parties to a collective labor agreement, insofar as it concerns the information necessary for concluding or amending the collective labor agreement.
Source: iTiesības