Trade Secrets Law in Costa Rica
Costa Rica provides specific legal protection for trade secrets through the Law on Undisclosed Information (Ley sobre Información No Divulgada), enacted in 2018. This legislation aligns with international standards, particularly the TRIPS Agreement and the Central America–Dominican Republic–United States Free Trade Agreement (CAFTA-DR), to safeguard confidential business information.
🇨🇷 Legal Framework for Trade Secrets in Costa Rica
1. Law on Undisclosed Information (2018)
This law offers comprehensive protection for trade secrets, defining them as information that:
Is secret, meaning it is not generally known or easily accessible to persons within the circles that normally deal with such information;
Has commercial value due to its secret nature; and
Has been subject to reasonable steps by its lawful owner to keep it secret
The law also establishes a repository system managed by the Registry of Industrial Property, where businesses can deposit materials containing undisclosed information to further protect their trade secrets.
2. Enforcement Mechanisms
Costa Rica's legal system allows for both civil and criminal actions in cases of trade secret misappropriation. This includes the possibility of initiating lawsuits for damages and seeking injunctions to prevent further unauthorized use or disclosure of trade secrets.
3. International Commitments
Under CAFTA-DR, Costa Rica has committed to protecting test data and trade secrets submitted to the government for the purpose of product approval, ensuring that such information is not used unfairly or disclosed without authorization.
🛡️ Practical Measures for Protecting Trade Secrets
To effectively safeguard trade secrets in Costa Rica, businesses should consider the following strategies:
Non-Disclosure Agreements (NDAs): Implement NDAs with employees, contractors, and business partners to legally bind them to confidentiality obligations.
Internal Policies: Develop and enforce internal policies that clearly define trade secrets and outline procedures for handling and protecting confidential information.
Access Controls: Limit access to sensitive information to authorized personnel only.
Employee Training: Educate employees about the importance of confidentiality and the company's policies regarding trade secrets.
Exit Procedures: Establish protocols to ensure that departing employees return or destroy confidential materials and are reminded of their ongoing confidentiality obligations.
✅ Summary
Costa Rica's Law on Undisclosed Information provides robust legal protection for trade secrets, aligning with international standards and commitments under CAFTA-DR. Businesses operating in Costa Rica are encouraged to implement comprehensive internal measures, including NDAs and access controls, to safeguard their confidential information effectively.
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