Trade Secrets Law in Chile
Chile provides legal protection for trade secrets under its Industrial Property Law (Law No. 19.039), particularly in Title VIII, which defines and regulates trade secrets. This framework was further strengthened by Law No. 21.355, enacted in 2021, to align with international standards and enhance enforcement mechanisms
🔐 Definition of a Trade Secret
According to Article 86 of the Industrial Property Law, a trade secret in Chile is any undisclosed information that:
Is not generally known or easily accessible to individuals within circles that normally deal with such information.
Has commercial value because it is secret.
Has been subject to reasonable steps by its legitimate holder to keep it secret.
This definition aligns with international standards, ensuring that businesses can protect valuable confidential information effectively.
⚖️ Legal Remedies and Enforcement
Chilean law provides both civil and criminal remedies for the misappropriation of trade secrets:
Civil Actions: The legitimate holder of a trade secret can seek compensation for damages resulting from unauthorized use or disclosure.
Criminal Sanctions: Unauthorized acquisition, use, or disclosure of trade secrets with the intent to obtain profit or cause harm is considered a criminal offense, punishable by fines and imprisonment
These provisions offer robust protection for trade secret holders, deterring potential infringers through significant legal consequences.
🛡️ Protection Measures
To ensure the protection of trade secrets, businesses in Chile are advised to:
Implement Confidentiality Agreements: Use non-disclosure agreements (NDAs) with employees, contractors, and partners.
Restrict Access: Limit access to confidential information to individuals who need to know for their work
Label Confidential Information: Clearly mark documents and materials containing trade secrets as “confidential.”
Train Employees: Educate staff about the importance of maintaining confidentiality and the legal implications of breaches.
By taking these steps, companies can demonstrate that they have taken "reasonable measures" to protect their trade secrets, a key requirement under Chilean law.
🌍 International Alignment
Chile is a member of the World Trade Organization (WTO) and adheres to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which mandates the protection of trade secrets. Additionally, Chile's participation in various international treaties and agreements reinforces its commitment to safeguarding intellectual property rights.
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