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21 January 2016
Issue: 7683 / Categories: Legal News
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Protecting trade secrets

Employment lawyer raises questions over new EU legislation

New EU legislation to protect trade secrets has some “unclear” provisions that may require clarification by a judge and is not consistent in some areas with current UK law, an employment lawyer has warned.

Under the Trade Secrets Directive, a “trade secret” is defined as a secret that has commercial value and has been subject to reasonable steps to keep it secret by the person in control of the information. The Directive aims to counter the problem of trade secret theft and to harmonise the definition of “trade secret” to provide clear EU-wide protection. Currently, the law across member states is fragmented.

The Directive is due to be finally approved and adopted by March 2016. Member states then have two years to implement its provisions.

Christine Young, employment partner at Herbert Smith Freehills, says: “Companies operating across the EU will welcome a more unified approach.

“However, there are some downsides to the Directive. Some of the provisions are unclear and may require clarification as to their scope by the Court of Justice of the European Union (ECJ). There are also some areas where the Directive is not consistent with the current UK position on trade secrets.

“A hurdle for companies in the UK using the Directive is that they will need to show they have taken reasonable steps to keep the trade secret confidential. That is likely to require adequate contractual and physical protections to be put in place. This is a shift in emphasis from the UK common law approach.

“The carve-outs for whistle-blowers are also wider than the current UK legislation and the test for seeking injunctive relief is more involved than the current test.”

 
Issue: 7683 / Categories: Legal News
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MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
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