Information security

European Union: EU Council Adopts Directive On Protection Of Trade Secrets

On 27 May 2016, the Council of the European Union adopted the Directive on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure (the "Trade Secrets Directive") (See, VBB on Business Law,  Volume 2016, No. 4, p. 13; Volume 2015, No. 12, p. 16; and Volume 2015, No. 9, p. 12 and 13, available at www.vbb.com ).

To qualify as a trade secret and therefore be protected pursuant to the Trade Secrets Directive, information must meet each of the following characteristics: (i) information that, as a body or from its assembly of components, is not known and readily accessible in circles that normally deal with the same kind of information; (ii) information that holds commercial value due to its secrecy; and (iii) information where the trade secret holder has implemented reasonable steps to keep it a secret.

Scope of Protection

Under the Trade Secrets Directive, trade secrets are protected against unlawful acquisition as well as unlawful use and disclosure.

Unlawful acquisition refers to any form of access, appropriation, or copying of materials which contain the trade secret or from which the trade secret can be deduced without the trade secret holder's consent. More broadly, any conduct contrary to honest commercial practices may constitute unlawful acquisition.