Trade Secrets Law in Estonia
Estonia provides robust legal protection for trade secrets, aligning with European Union standards and international agreements. The primary legislation governing this area is the Restriction of Unfair Competition and Protection of Business Secrets Act, enacted on November 21, 2018. This Act prohibits the unlawful acquisition, use, and disclosure of business secrets, classifying such actions as unfair competition. It outlines various remedies for affected businesses, including injunctions, destruction or return of infringing goods, and compensation for both material and immaterial damages.
Under this framework, businesses are encouraged to actively protect their trade secrets by implementing reasonable measures to maintain confidentiality. These measures may include securing data storage, restricting access to sensitive information, and educating employees and partners about confidentiality obligations.
The Act also accommodates whistleblowing by stipulating that the disclosure or use of a trade secret is not deemed unlawful if done to expose an unlawful act, protect public interests, safeguard workers' rights through a representative, or defend a recognized legitimate interest. Each case is evaluated individually to determine the applicability of this exception.
As an EU member state, Estonia adheres to the EU Trade Secrets Directive (2016/943), which harmonizes the protection of trade secrets across the Union. This Directive ensures that trade secrets are protected against unlawful acquisition, use, and disclosure, and that effective remedies are available to holders of trade secrets.
For businesses operating in Estonia, it's advisable to implement comprehensive internal policies to safeguard trade secrets. This includes using non-disclosure agreements (NDAs), establishing access controls, and providing training on confidentiality practices. In case of suspected misappropriation, legal actions can be pursued through Estonian courts, which are empowered to grant various remedies as stipulated by the law.
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