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- GeschGehG came into force on April 26, 2019, protects trade secrets from unauthorized acquisition and disclosure.
- Transposes EU Directive 2016/943 into German law, replaces earlier provisions in the Unfair Competition Act.
- Companies must actively take confidentiality measures in order to enjoy legal protection for their trade secrets.
- The law defines permitted actions as the independent discovery of a trade secret.
- There are clear prohibitions on the unlawful acquisition and use of trade secrets.
- Protection for whistleblowers and employees' rights to information are legal exceptions.
- In the event of violations of the law, there are claims for removal, omission and compensation.
The Trade Secrets Act (GeschGehG) came into force on April 26, 2019 and serves to protect trade secrets from unauthorized acquisition, use and disclosure. It transposes EU Directive 2016/943 on the protection of trade secrets into German law and replaces the previous regulations on the protection of trade secrets in the Unfair Competition Act.
Definition of a trade secret:
According to § 2 No. 1 GeschGehG, a trade secret is information,
(a) which is not generally known or readily accessible to persons in the circles normally dealing with this type of information, either in their entirety or in the precise arrangement and composition of their constituents, and is therefore of economic value;
(b) the subject-matter of the circumstances is subject to appropriate confidentiality measures by its lawful holder;
c) for which there is a legitimate interest in confidentiality.
Key aspects of the law:
1. requirements for protection: In contrast to the previous legal situation, companies must now actively take appropriate confidentiality measures in order to enjoy the legal protection.
2. permitted acts: The law defines certain acts as permitted, such as the independent discovery or creation of a trade secret.
3. prohibitions on action: Actions are defined that are considered to be the unlawful acquisition, use or disclosure of trade secrets.
4. exceptions: The law provides for exceptions, for example to protect whistleblowers or to exercise the information and consultation rights of employees.
5 Legal consequences: In the event of violations of the law, the owner of the trade secret is entitled to various claims, including removal, injunction, damages and information.
6 Special procedural features: The law contains special provisions on the protection of trade secrets in court proceedings.
For companies, the Trade Secrets Act means that they must review their internal processes and protective measures and, if necessary, adapt them to ensure the legal protection of their trade secrets. This includes technical and organizational measures as well as legal measures.
