Trade Secrets Law in Laos
In Laos, trade secrets are primarily protected under the Law on Intellectual Property (No. 38/NA), enacted on November 15, 2017, and amended in 2019. This law aligns with international standards, including the World Trade Organization’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement.
🛡️ Definition and Protection
A trade secret in Laos refers to confidential business information—such as formulas, production processes, or other commercially valuable data—that is not publicly known and is subject to reasonable measures to maintain its secrecy. Protection does not require registration; it is automatic upon meeting these criteria.
✅ Key Rights of Trade Secret Holders
Under the law, trade secret owners have the right to
Prevent unauthorized disclosure, acquisition, or use of their trade secrets.
Take legal action to stop infringements and seek damages.
Disclose, transfer, or license their trade secrets under confidentiality agreements.
Impose confidentiality obligations on employees and contractors, which continue even after the termination of their contracts.
⚖️ Infringement and Exceptions
Acts that do not constitute infringement include:
Reverse engineering or lawful analysis of a product
Acquiring information without a confidentiality obligation.
However, unauthorized disclosure or use of trade secrets is prohibited, including by employees or contractors who have access to such information.
🏛️ Enforcement and Remedies
Trade secret holders can enforce their rights through
Civil lawsuits to stop infringements and claim damages.
Criminal prosecution for serious violations, which may result in fines or imprisonment.
Administrative penalties, such as fines ranging from 1% to 5% of the total value of the damage caused
⏳ Duration of Protection
Trade secrets are protected indefinitely, as long as they remain confidential. Once the information becomes public or is no longer secret, protection ceases.
📝 Practical Tips for Protection
To safeguard trade secrets in Laos:
Implement strict internal confidentiality policies.
Use non-disclosure agreements (NDAs) with employees, contractors, and business partners.
Limit access to sensitive information on a need-to-know basis.
Regularly review and update security measures to address potential risks.
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