Short Reads

Legislative proposal to protect trade secrets: update

Legislative proposal to protect trade secrets: update

Legislative proposal to protect trade secrets: update

07.08.2018 NL law

On 5 July 2016, the EU Trade Secrets Directive came into effect (Directive 2016/943/EU). The directive intends to harmonise rules regarding the protection of undisclosed know-how and business information (trade secrets) across all EU member states. As the directive is not directly applicable in the member states, each member state must enact national implementing legislation.

In the Netherlands, a legislative proposal for the purpose of implementing the directive has been submitted and is currently under review. It is not yet known when the legislation on trade secrets will come into effect.

At present, there is no legislation on the protection of trade secrets in the Netherlands. The legislative proposal that is under review introduces a definition of trade secrets. In order to enjoy legal protection, companies should ensure that their confidential business information is brought under the definition of trade secrets: (1) the information is secret and is not generally known among or readily accessible to persons within the circles that normally deal with such information, (2) the information has commercial value and (3) reasonable measures have been taken to keep the information secret (e.g. by including confidentiality clauses in contracts, by registering trade secrets or using digital measures such as encryption).

On the basis of the current legislative proposal, it will be possible to take action against unlawfully obtaining, using or disclosing trade secrets by third parties (e.g. employees or competitors). Entitled parties will have a number of options to protect their trade secrets. In addition, they will be provided with extra resources to fight trade secret infringements. They can, for example, demand a ban on the use or disclosure of trade secrets or bring an action for the recall or destruction of products. Under certain conditions, damages may also be claimed.

Once approved, the new legislation on trade secrets will give entitled parties the opportunity to protect their trade secrets and to deal firmly with trade secret infringers. In practice, it will probably also have an effect on the drafting of all sorts of confidentiality agreements (NDAs, confidentiality clauses in employment agreements, etc.) as the new legislation will introduce a new legal landscape.

Team

Related news

10.04.2019 NL law
Damage due to a defective driveway and the Dutch twenty year limitation period: When does limitation start in case of a continuous event that causes damage?

Short Reads - On 22 March 2019, the Dutch Supreme Court ruled (ECLI:NL:HR:2019:412) that the strict liability for buildings (opstalaansprakelijkheid) is not linked to a specific damaging act but to a damaging condition, as referred to in section 6:174 DCC. Therefore, there is no reason to regard a damaging act as an 'event that caused damage' as referred to in section 3:310 DCC concerning the limitation period for claims for damages.

Read more

11.04.2019 NL law
The Dutch UBO register will be introduced in January 2020

Short Reads - On 4 April 2019, a legislative proposal to implement the Dutch Ultimate Beneficial Owner (''UBO'') register (''UBO register'') was submitted to the Dutch parliament. The obligation to introduce a UBO register derives from the Fourth Anti-Money Laundering Directive as amended by the Fifth Anti-Money Laundering Directive. Approximately 1.5 million Dutch legal entities must register information on their UBOs in this register.

Read more

08.04.2019 NL law
Stibbe lanceert webtool over implementatie aandeelhoudersrechtenrichtlijn

Short Reads - Op 2 april 2019 heeft de Tweede Kamer het wetsvoorstel ter implementatie van de Herziene aandeelhoudersrechtenrichtlijn (EU) 2017/828 aangenomen. Hierbij zijn ook diverse Amendementen aangenomen in de eerder voorgestelde regeling rondom het bezoldigingsbeleid en het bezoldigingsverslag. Om u te informeren over de implementatie van de Herziene aandeelhoudersrechtenrichtlijn in Nederland hebben wij een webtool gelanceerd over dit onderwerp.

Read more

11.04.2019 NL law
Double roles in attributing knowledge

Short Reads - The knowledge of a person who in fact runs a company can be attributed to the company if the sole director and shareholder is a 'straw man', the Supreme Court confirmed in a judgment of 29 March 2019. The rules by the Supreme Court are not revolutionary or even new. But circumstances essential for the attribution of knowledge are ignored. The double role played by the 'man in charge' raises questions about how to apply the rules as identified by the Supreme Court to the facts

Read more

05.04.2019 NL law
Wetsvoorstel implementatie Herziene aandeelhoudersrechtenrichtlijn aangenomen door de Tweede Kamer

Short Reads - Op 2 april 2019 heeft de Tweede Kamer het wetsvoorstel ter implementatie van de Herziene aandeelhoudersrechtenrichtlijn (EU) 2017/828 aangenomen. Hierbij zijn ook diverse Amendementen aangenomen in de eerder voorgestelde regeling rondom het bezoldigingsbeleid en het bezoldigingsverslag.

Read more

Our website uses functional cookies for the functioning of the website and analytic cookies that enable us to generate aggregated visitor data. We also use other cookies, such as third party tracking cookies - please indicate whether you agree to the use of these other cookies:

Privacy – en cookieverklaring