How Are Trade Secrets and Sales Data Protected in Germany?

Question from Viennalaw, How Are Trade Secrets and Sales Data Protected in Germany?

Answer from AI:

In Germany, the protection of trade secrets, including sales data of private companies, is governed by the German Act on the Protection of Trade Secrets (Gesetz zum Schutz von Geschäftsgeheimnissen, or GeschGehG), which came into force in April 2019. This act aligns with the European Union’s Directive (EU) 2016/943 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use, and disclosure.

Understanding Trade Secrets

A trade secret is any information that:

• Is not generally known or readily accessible to the relevant business circles or to the public,
• Has commercial value because it is secret, and
• Has been subject to reasonable steps by the person lawfully in control of the information to keep it secret.

Sales data can often qualify as a trade secret because it contains valuable information about customer preferences, pricing strategies, and market trends that competitors could use to their advantage if it were disclosed.

Protection Measures for Trade Secrets

Under the GeschGehG, companies are required to take active measures to protect their trade secrets. This could include:

• Implementing non-disclosure agreements (NDAs) with employees and business partners,
• Establishing secure data management systems,
• Limiting access to sensitive information on a need-to-know basis, and
• Training staff on the importance of confidentiality and how to handle trade secrets.

Data Protection and Privacy

In addition to trade secret laws, companies in Germany must also comply with the General Data Protection Regulation (GDPR), which provides a framework for data protection and privacy in the EU. The GDPR requires companies to implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk of the data they process.

Legal Remedies for Breach of Trade Secrets

If a trade secret is unlawfully acquired, used, or disclosed, the holder of the trade secret may seek legal remedies, which can include:

• Injunctions to prevent further use or disclosure,
• Claims for damages,
• The destruction or recall of infringing goods, and
• Compensation for any unjust enrichment.

When to Seek Legal Advice

If you suspect that your trade secrets have been compromised, or if you need assistance in implementing measures to protect your sales data, it is advisable to consult with a legal professional who specializes in intellectual property and data protection law. They can provide personalized advice and help you navigate the complexities of the legal system.

For more information on the German Act on the Protection of Trade Secrets, you can refer to the official legislation text (available in German).

Remember, while this information provides a general overview, it should not be taken as specific legal advice. Legal matters can be complex and fact-specific, and it is always recommended to seek professional legal counsel for your particular situation.