Trade Secrets Law in Luxembourg
Here is a detailed overview of the Trade Secrets Law in Luxembourg:
🇱🇺 Trade Secrets Law in Luxembourg
1. Legal Framework
Luxembourg protects trade secrets primarily under:
Law of June 26, 2019, implementing EU Directive 2016/943 on the protection of trade secrets.
The Commercial Code and Civil Code, especially regarding unfair competition and contractual obligations.
International agreements, including:
The TRIPS Agreement
The Paris Convention
Membership in WIPO and the European Union.
2. Definition of Trade Secrets
As per the 2019 Law (aligned with EU Directive 2016/943), a trade secret is defined as information that:
Is secret, i.e., not generally known or easily accessible to persons within the circles that normally deal with that kind of information.
Has commercial value because it is secret.
Has been subject to reasonable steps by its lawful holder to keep it secret.
Examples include formulas, business strategies, client databases, technical know-how, algorithms, etc.
3. Legal Protections
Luxembourg’s law prohibits the unlawful acquisition, use, or disclosure of trade secrets. Specifically, it protects against:
Unauthorized access to or appropriation of materials containing trade secrets.
Breach of confidentiality agreements or duties.
Use of trade secrets in violation of contract terms or employment obligations.
4. Remedies and Enforcement
Rights holders may seek remedies through civil courts. Available legal actions include:
Injunctions to stop further use or disclosure.
Provisional and protective measures, such as the seizure of infringing goods.
Damages for losses caused by the misuse.
Destruction or return of materials containing the trade secret.
Preservation of confidentiality during legal proceedings.
In serious cases, criminal penalties may apply under laws governing theft, fraud, or industrial espionage.
5. Best Practices for Businesses
To strengthen legal protection of trade secrets:
Use Non-Disclosure Agreements (NDAs) and confidentiality clauses in contracts.
Implement internal information security policies and employee training.
Keep records of steps taken to protect trade secrets (important in litigation).
6. International Compliance
Being a member of the EU and WTO, Luxembourg's framework complies with:
EU Directive 2016/943
TRIPS Agreement (Article 39 on undisclosed information)
WIPO standards
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