Trade Secrets Law in Canada
In Canada, trade secrets are protected primarily through common law and contractual agreements, as there is no dedicated federal statute governing trade secrets. Protection is afforded when the information:
Is confidential: Not generally known or readily accessible.
Has economic value: Derives value from its secrecy.(
Is subject to reasonable efforts to maintain secrecy: Such as limiting access and marking documents as confidential.
These criteria align with the general understanding of trade secrets under Canadian law .
🧠 Legal Protections
In Canada, trade secrets are protected through:
Common Law: Claims can be made under breach of confidence, fiduciary duty, or unjust enrichment .(
Contract Law: Non-disclosure agreements (NDAs) and confidentiality clauses in employment or business contracts are commonly used to protect trade secrets
Criminal Law: Section 391 of the Criminal Code criminalizes the fraudulent acquisition or communication of trade secrets .
⚖️ Enforcement and Remedies
Enforcement of trade secret protection in Canada involves:
Civil Remedies: Courts may grant injunctions, award damages, or order the return or destruction of misappropriated trade secrets.
Criminal Prosecution: Under Section 391 of the Criminal Code, individuals can be prosecuted for fraudulently obtaining or communicating trade secrets
The Supreme Court of Canada has ruled that civil remedies for trade secret misappropriation fall within provincial jurisdiction over property and civil rights .
🛡️ Best Practices for Protection
To safeguard trade secrets, businesses should:
Implement Confidentiality Agreements: Use NDAs with employees, contractors, and business partners.
Restrict Access: Limit access to sensitive information on a need-to-know basis.
Secure Information: Store trade secrets in secure physical and digital environments.
Educate Stakeholders: Inform employees and partners about the importance of confidentiality and the company's policies.
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