Brussels, 28/11/2013 (Agence Europe) -The European Commission has taken steps to ensure that it will no longer be possible for a competitor to gain advantage over an entrepreneur by stealing trade secrets, such as a method used in manufacturing, for example.
On Thursday 28 November, a regulation was put forward to provide a common definition of trade secrets, as well as means through which victims of trade secret misappropriation can obtain redress in civil proceedings. This could also include the confiscation at European borders of products that have been manufactured as a result of the theft of trade secrets. A joint European initiative will help to make the fight more efficient against the illegal appropriation of protected data by operators in third countries (particularly in Southeast Asia) when currently, one in five European companies has been the victim of attempted confidential information theft. This will also help to create a climate of trust between member states and consequently improve cooperation in innovation.
Increasing problem. By resorting to cybercrime or industrial espionage, the theft of manufacturing secrets, recipes or know-how is on the increase (7% more complaints between 2012 and 2013) giving a competitive edge to the party that has procured the secrets in question. According to European Commissioner for Industry Antonio Tajani, it is the SMEs who depend most on business secrecy (cost of patents, protection against infringements) and they are the biggest victims of this phenomenon. In a press release, the commissioner stated that “the loss of a trade secret and disclosure of a key invention to competitors means a catastrophic drop in value and future performance for an SME”.
Definition and corrective measures. Faced with the problem of disparate national legislation, Europe is at a disadvantage when it comes to tackling this illegal practice. Some countries have not adopted any legal provisions on the subject: Belgium, Cyprus, Ireland, Luxembourg, Malta, United Kingdom, along with France and the Netherlands, which are thinking of taking action. The Commission has therefore taken the initiative to create a common legislative basis. On the one hand, it defines what business secrets are (the link between the confidential nature of information that procures value and justifies efforts for keeping it secret). It also guarantees that civil proceedings will authorise compensation if this information has been obtained, disclosed or used illegally (even by a third party). National civil courts would have two years to process a complaint, whilst ensuring respect for the confidential nature of the information concerned so as not to discourage companies from filing a complaint. The Commission also plans to introduce a range of corrective measures, such as granting damages and interest or calling for the removal and destruction of products that have resulted from the illegal use of trade secrets.
Innovation. The Commission is being ambitious in its quest to break the vicious circle of distrust between European entrepreneurs. The latter do not feel sufficiently protected and are far from enthusiastic about creating new partnerships for developing new products. This lack of enthusiasm weighs heavily on Europe's innovation deficit. Commissioner for the Internal Market Michel Barnier said that, “if they are less exposed to the dangers of having their trade secrets stolen, they will be less afraid about investing in the development of new knowledge”. According to official sources, the Commission has been encouraged by the US and Japan in the negotiations on trade agreements to form a more effective bloc against attempts to procure trade secrets by Chinese industry. (MD/transl.fl)