New Trade Secrets Directive now in force across Central and Eastern Europe
As Europe focused on GDPR implementation, the new EU Trade Secrets Directive required transposition into national laws by June 9th, 2018. This legislation establishes “a modern and for the first time EU-wide regime for the protection of trade secrets,” addressing inconsistent IP protection across Member States.
THE NEW DIRECTIVE
Confidential know-how and business information represent critical assets for many organizations. The Trade Secrets Directive (EU) 2016/943 introduces a harmonized definition of trade secrets and establishes protections against unlawful acquisition, use, or disclosure. The directive requires Member States to provide remedies for infringements and ensure trade secrets remain protected during court proceedings.
The core requirement defines protectable trade secrets as information that is secret, commercially valuable, and “subject to reasonable protection measures.” Companies should identify valuable assets and implement protection systems, ideally coordinating these efforts with GDPR compliance initiatives since both involve information security.
THE TRANSPOSITION INTO DOMESTIC REGIMES
Courts must interpret national laws according to the Directive. Member States face potential liability if trade secrets cannot be enforced due to insufficient transposition, particularly regarding procedural rules.
STATUS OF IMPLEMENTATION
Croatia: Implemented through the Act on Protection of Undisclosed Information with Commercial Value (April 2018).
Czech Republic: Will amend existing Trademark and IP enforcement laws rather than creating separate legislation. Approval expected September or October 2018.
Hungary: Adopting a new, separate act on trade secrets, departing from current personality rights framework. Parliamentary resubmission planned after minor amendments.
Poland: Amending the Act on Combating Unfair Competition; government project submitted May 11, 2018.
Romania: Not yet implemented; draft law anticipated from the Competition Council.
Slovakia: Already implemented via Commercial Code amendment (January 1, 2018).
Slovenia: Trade Secrets Act in preparation; adoption unlikely in the near future.