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Europe Daily Bulletin No. 11080
SECTORAL POLICIES / (ae) internal market

Common Council position at end of May on trade secrets

Brussels; 15/05/2014 (Agence Europe) - The Competitiveness Council on 26 May is expected to reach a common position among member states on the subject of harmonising the framework for protecting trade secrets. A compromise on the European Commission's draft directive had already received the approval of European ambassadors on Wednesday 14 May (see EUROPE 10973). Once this position is confirmed, the general approach will form the basis of the European Parliament's negotiating brief (which has still not examined this issue).

The compromise put forward by the Greek Presidency benefited from sufficiently broad support from member states, despite the fact that some member states still require a certain amount of convincing on the question (particularly Sweden, Finland, Hungary and Estonia), according to one diplomatic source. On the basis of this compromise, the definition of what is a trade secret is expected to remain the same as that proposed by the European Commission. Hitherto, the national delegations had acknowledged the need to harmonise their respective legislation, despite the fact that certain members, such as Belgium, do not even guarantee the protection of these secrets or confidential trade information. Nonetheless, the Council is expected to ensure that stricter rules can be introduced by member states. France and Germany are reportedly paying particular attention to this issue.

The Council is also expected to extend the maximum period for beginning legal proceedings from five to six years. Provisions on guarantees of confidentiality during legal proceedings are also expected to be strengthened so that secrets cannot be disclosed. The Council is expected to allow restrictions on the responsibility of employees in the event of trade secrets being disclosed, when this is done inadvertently (as in trade union cases).

By providing itself with a negotiating brief quite quickly, the Council should send out a strong message to the European Parliament, which did not have the time to examine this issue at the end of its legislature. The fact that the directive is part of civil and not criminal law facilitates the legislators' task because the dossier remains technical and not political, said our same diplomatic source. (MD)

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