What is the scope of trade secret protection in the European Union?

The scope of trade secret protection in the European Union (EU) is primarily governed by the Trade Secrets Directive (2016/943/EU). This directive adopts a broad definition of what constitutes a trade secret, and protects business owners from the unlawful acquisition, use, and disclosure of those trade secrets. Trade secrets are defined as any information which is secret, has commercial value, and has been subject to reasonable steps to keep it a secret. Such information may include information regarding the production of products, marketing plans, or customer data. The Trade Secrets Directive requires Member States to establish civil law remedies, including damages and injunctions, for trade secret misappropriation. It also allows for criminal sanctions in certain circumstances. Under the Directive, trade secrets may be disclosed to the court for the purposes of settling disputes over trade secrets, without the risk of those secrets becoming public. The Trade Secrets Directive seeks to increase business confidence in the Europe Union by providing greater legal certainty and uniformity in the protection of trade secrets. Through its adoption, the EU has harmonised the definition of trade secrets and provided greater clarity regarding the rights and remedies that companies can pursue if their trade secrets are stolen.

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