Trade Secrets Law in El Salvador
In El Salvador, the protection of trade secrets is primarily governed by the Intellectual Property Law, enacted through Decree No. 604 and amended by Legislative Decree No. 611 on May 17, 2017. This legislation aligns with international standards, including the TRIPS Agreement, to which El Salvador is a signatory
🧠 Definition of Trade Secrets
Under El Salvador's Intellectual Property Law, a trade secret is defined as:
Confidential Information: Not generally known or readily accessible to persons within the circles that normally deal with the kind of information in question.
Commercial Value: Has commercial value because it is secret.
Reasonable Measures: Has been subject to reasonable steps by the holder to keep it secret.
This definition is consistent with international norms and provides a legal basis for protecting business-critical information.
⚖️ Legal Protections and Enforcement
El Salvador's legal framework offers several avenues for the protection and enforcement of trade secrets:
Civil Remedies: Trade secret holders can seek injunctive relief to prevent further unauthorized use or disclosure, and monetary damages for losses incurred.
Criminal Liability: The Penal Code criminalizes the unauthorized acquisition, use, or disclosure of trade secrets, with penalties including imprisonment and fines.
Unfair Competition Law: While not specifically addressing trade secrets, El Salvador's Unfair Competition Law provides a legal framework for addressing acts that harm the economic interests of businesses, which may include the misappropriation of trade secrets.
🛡️ Best Practices for Protection
To safeguard trade secrets, businesses in El Salvador should:
Implement Non-Disclosure Agreements (NDAs): Ensure that employees, contractors, and business partners sign NDAs to legally bind them to confidentiality obligations.
Integrate Confidentiality Clauses: Include confidentiality provisions in employment contracts and business agreements.
Restrict Access: Limit access to sensitive information to authorized personnel only.
Conduct Regular Training: Educate employees about the importance of trade secret protection and the company's policies regarding confidential information.
Monitor and Audit: Regularly audit systems and processes to detect potential leaks or unauthorized access.
🏢 Enforcement Authorities
The National Directorate of Intellectual Property (DNPI) is the central authority responsible for overseeing intellectual property matters in El Salvador, including trade secret protection.
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