EU Council adopts trade secrets directive

The European Council has adopted new rules for the protection of trade secrets and confidential information of EU-based companies.

In April this year, WIPR reported that the European Parliament had voted in favour of the trade secrets directive, which increases harmonisation of trade secrets laws.

It was passed on April 14 with 503 to 131 votes, with 18 abstentions.

Under the directive, a trade secret is defined as providing commercial value to a company because it is secret. The legislation outlines an EU-wide definition.

Provisions on ensuring trade secrets are kept confidential during legal proceedings are also covered.

The directive also obliges EU member states to ensure that victims of trade secret misuse are able to defend their rights in court and seek compensation.

Throughout the negotiations MEPs stressed the need to ensure that the legislation does not curb media freedom or restrict the work of journalists regarding their investigations and protection of sources.

The directive  was approved by the parliament’s Legal Affairs Committee in January this year.

According to a statement released today, May 27, the council announced that it had adopted the new directive.

The directive is intended to have a deterrent effect against the illegal disclosure of trade secrets without undermining fundamental rights, including public safety, consumer protection and mobility of workers.

After the publication of the directive in the Official Journal of the EU and its entry into force, “member states will have a maximum of two years to incorporate the new provisions into domestic law.”

Full details of the directive can be viewed  here.