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Legal regulation of trade secret protection in Ukraine

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Consultant # 1377
Consultant # 1377
Lawyer
Ukraine / Kyiv

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Publication date: 09.07.2024

Legal regulation of trade secret protection in Ukraine
 

Introduction.
 

Trade secrets are an important asset for any company, as they include confidential information that provides competitive advantages in the market. Legal regulation of trade secret protection in Ukraine is aimed at ensuring confidentiality, protection and proper use of such information. In this article, we will review the main principles, regulations and authorities that regulate the protection of trade secrets in Ukraine, as well as the rights and obligations of business entities to protect trade secrets.
 

Basic principles of trade secret protection
 

The legal regulation of trade secret protection in Ukraine is based on several basic principles that ensure effective protection of confidential information:
 

Theprinciple of confidentiality. Information that constitutes a trade secret must remain confidential and not be disclosed to third parties without the owner's consent.
 

Theprinciple of legality. Protection of trade secrets is carried out in accordance with the law, in compliance with legal norms and procedures.
 

Theprinciple of necessity. Trade secrets are protected only in cases where such information is really valuable to the company and disclosure may harm its interests.
 

Theprinciple of responsibility. Persons who have access to trade secrets are responsible for its preservation and unauthorized disclosure.
 

Main regulatory acts
 

The legal regulation of trade secret protection in Ukraine is based on a number of regulations, among which the key ones are
 

TheCivil Code of Ukraine. The Civil Code contains general provisions on the protection of confidential information, including trade secrets, and defines the rights and obligations of business entities to protect such information.
 

The CommercialCode of Ukraine. The Commercial Code defines the legal basis for the protection of trade secrets in the field of economic activity, establishes rules for the use and protection of confidential information.
 

TheLaw of Ukraine "On Information". The Law regulates legal relations in the field of information, including the protection of confidential information and trade secrets.
 

TheLaw of Ukraine "On Protection against Unfair Competition". The law establishes liability for the misuse of trade secrets, including the unlawful collection, disclosure and use of confidential information.
 

Criminal Code of Ukraine. The Criminal Code provides for criminal liability for the misuse of trade secrets that has caused significant damage to the company.
 

State regulatory authorities
 

The main governmental authorities responsible for regulating and supervising the protection of trade secrets in Ukraine are:
 

TheMinistry of Justice of Ukraine. The Ministry of Justice is responsible for formulating and implementing state policy in the field of trade secret protection, developing regulations and coordinating the activities of other state bodies in this area.
 

Antimonopoly Committee of Ukraine (AMCU). The AMCU monitors compliance with the legislation on protection against unfair competition, including the misuse of trade secrets.
 

National Police of Ukraine. The police investigate criminal offenses related to the misuse of trade secrets.
 

Rights and obligations of business entities
 

Business entities that own trade secrets have a number of rights and obligations to protect them. The main rights and obligations include:
 

Rights of business entities
 

Theright to protect trade secrets. Business entities have the right to protect trade secrets from unauthorized use, disclosure and destruction.
 

Theright to claim damages. In case of misuse of trade secrets, business entities have the right to demand compensation for damages.
 

Theright to restrict access. Business entities have the right to restrict access to trade secrets, establish rules for access to such information and require signing non-disclosure agreements.
 

Obligations of business entities
 

Obligation toensure confidentiality. Business entities are obliged to take measures to ensure the confidentiality of trade secrets, including the implementation of internal rules and procedures for information protection.
 

The obligation toinform employees. Business entities are obliged to inform their employees about the rules of access to trade secrets and liability for their disclosure.
 

Duty tocontrol. Business entities are obliged to monitor compliance with the rules of trade secret protection and conduct regular inspections.
 

Protection of trade secrets
 

Trade secrets are protected through various legal mechanisms that ensure proper implementation of trade secret legislation. The main ways to protect trade secrets include:
 

Internal protection measures. These include implementing trade secret policies and procedures, restricting access to confidential information, signing non-disclosure agreements and other measures.
 

Administrative protection. It is carried out by applying to public authorities, in particular to the Antimonopoly Committee of Ukraine or the Ministry of Justice of Ukraine.
 

Civil legal protection. This includes filing lawsuits for recognition of rights, compensation for damages, recovery of compensation for misuse of trade secrets, cessation of actions that infringe trade secret rights, and other claims.
 

Criminal defense. Criminal liability is provided for certain types of trade secret infringement, including misuse of confidential information.
 

Administrative sanctions. Administrative fines and other sanctions may be imposed for infringement of trade secret rights in accordance with Ukrainian law.
 

Liability for infringement of trade secret rights
 

Trade secret infringement may result in various types of liability, including administrative, civil and criminal liability.
 

Administrative liability
 

Administrative fines may be imposed for trade secret infringement in accordance with the Code of Ukraine on Administrative Offenses. Administrative liability is applied in cases where the violations are not criminalized.
 

Civil liability
 

Civil liability for trade secret infringement involves compensation for damages caused by the misuse of confidential information. Business entities may file lawsuits for compensation for material and non-pecuniary damages, as well as for the cessation of unlawful actions.
 

Criminal liability
 

The Criminal Code of Ukraine provides for criminal liability for the misuse of trade secrets that has caused significant damage to the company. Such violations may be subject to fines, imprisonment or other types of punishment depending on the severity of the crime.
 

International aspect of trade secret protection
 

Ukraine is a party to a number of international agreements governing the protection of trade secrets, including the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), which is part of the World Trade Organization (WTO). These international agreements set standards for the protection of trade secrets and provide for dispute resolution mechanisms between member states regarding trade secret infringement.
 

Conclusion.
 

The legal regulation of trade secret protection in Ukraine is an important tool for ensuring confidentiality, protection and proper use of commercially important information. It includes the regulatory framework, activities of state regulatory and supervisory authorities, rights and obligations of business entities, as well as mechanisms for protecting trade secret rights. Effective legal regulation contributes to the development of the economy, raising the level of respect for intellectual property and ensuring a stable legal environment in Ukraine.
 

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