Trade Secrets Law in Liechtenstein
In Liechtenstein, trade secrets are protected under the Act on the Protection of Trade Secrets, which aligns with the European Union's Directive 2016/943 on the protection of undisclosed know-how and business information. This legislation provides a comprehensive framework for safeguarding confidential business information against unlawful acquisition, use, or disclosure.
📜 Legal Framework
The Act defines a trade secret as information that:
Is not generally known or readily accessible to individuals within the circles that normally deal with such information;
Has commercial value because it is secret;
Has been subject to reasonable steps by its lawful holder to keep it secret.
This definition ensures that a wide range of confidential business information, such as formulas, processes, customer lists, and marketing strategies, can be protected under the law.
⚖️ Enforcement and Legal Remedies
The Act provides several remedies for the unlawful acquisition, use, or disclosure of trade secrets:
Injunctions: Courts can order the cessation of unlawful use or disclosure of trade secrets.
Damages: Compensation can be awarded for losses suffered due to the infringement.
Destruction or delivery up: Infringing goods may be destroyed or delivered to the trade secret holder.
These remedies aim to restore the position of the trade secret holder and deter future infringements.
🛡️ Protection Measures
To ensure the protection of trade secrets, businesses in Liechtenstein are advised to:
Implement Confidentiality Agreements: Use non-disclosure agreements (NDAs) with employees, contractors, and partners.
Restrict Access: Limit access to confidential information to individuals who need to know for their work.
Label Confidential Information: Clearly mark documents and materials containing trade secrets as "confidential."
Train Employees: Educate staff about the importance of maintaining confidentiality and the legal implications of breaches.
By taking these steps, companies can demonstrate that they have taken "reasonable measures" to protect their trade secrets, a key requirement under Liechtenstein's law.
🏛️ Judicial Considerations
Liechtenstein's legal system provides for the protection of trade secrets during legal proceedings. If the presentation of a document would lead to a breach of a trade secret, the document does not have to be presented. Similarly, if answering a question during a witness statement would reveal a trade secret, the witness can refuse to answer. These provisions ensure that the confidentiality of trade secrets is maintained even in the course of litigation.
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