Trade Secrets Law in Hong Kong
Here is an overview of Trade Secrets Law in Hong Kong:
ðŸ‡ðŸ‡° Trade Secrets Law in Hong Kong
1. Legal Framework
Hong Kong does not have a specific legislation dedicated exclusively to trade secrets.
Protection is primarily provided under:
Common law principles — especially through the law of confidence.
Contract law — using Non-Disclosure Agreements (NDAs) and confidentiality clauses.
Tort law — including breach of confidence and inducement to breach.
Certain criminal provisions may also apply in cases of theft or fraud.
2. Definition of Trade Secrets
While not defined in statute, under common law, a trade secret typically refers to:
Information that is confidential and not generally known.
Information that has commercial value.
Information that the owner has taken reasonable steps to keep secret.
Examples include customer lists, product formulas, business strategies, proprietary algorithms, etc.
3. Protection Mechanisms
Civil Actions:
Breach of confidence is the main legal cause of action.
Claimants must show:
The information had the necessary quality of confidence.
It was disclosed in circumstances imposing an obligation of confidence.
There was unauthorized use or disclosure, causing harm.
Contractual Protections:
NDAs and confidentiality clauses in employment, vendor, or licensing agreements are standard.
Criminal Law:
No specific offense for trade secret theft, but acts like fraud, theft, or unauthorized access to computers can be prosecuted under the Crimes Ordinance.
4. Enforcement
Remedies include:
Injunctions to prevent further disclosure or use.
Damages or account of profits.
Delivery up or destruction of documents or devices containing the secrets.
Possible criminal prosecution under relevant offenses (e.g. theft, computer misuse).
5. International Treaties
As a Special Administrative Region of China, Hong Kong is:
A member of the World Trade Organization (WTO).
Bound by the TRIPS Agreement through China's WTO membership.
Signatory to the Paris Convention and other WIPO treaties.
Summary Table
| Aspect | Details |
|---|---|
| Legal Basis | Common law (breach of confidence), contract law, criminal law |
| Specific Trade Secret Law | None |
| Key Protections | NDAs, confidentiality clauses, equitable remedies |
| Enforcement | Injunctions, damages, account of profits, possible criminal action |
| International Treaties | WTO/TRIPS, Paris Convention |
RELATED Blog
0 comments