Trade Secrets Law in Philippines
Trade Secrets Law in the Philippines
The Philippines does not have a standalone Trade Secrets Act, but trade secrets are protected under several laws and legal principles, primarily through:
Intellectual Property Code of the Philippines (Republic Act No. 8293)
Civil Code provisions on contracts and torts
Labor Code
Criminal laws on theft and breach of confidentiality
Contractual agreements such as NDAs
1. Legal Framework Protecting Trade Secrets
a. Intellectual Property Code (RA 8293)
While the IP Code focuses mainly on patents, trademarks, copyrights, and industrial designs, it recognizes trade secrets as a form of intellectual property.
Article 136 of the IP Code protects undisclosed information, especially as it relates to patent law, but there is no separate detailed regime for trade secrets.
b. Civil Code of the Philippines
Provides protection through contract law:
Enforceability of non-disclosure agreements (NDAs)
Remedies for breach of contract when confidential information is disclosed
Covers torts for unauthorized disclosure or misuse of confidential information.
c. Labor Code
Employee confidentiality obligations can be enforced, preventing former employees from disclosing or using trade secrets.
d. Criminal Laws
Acts such as theft, fraud, or breach of confidentiality can be penalized criminally if trade secrets are unlawfully disclosed or stolen.
2. Definition of Trade Secrets
Philippine law generally defines trade secrets as:
Information that is not generally known or readily accessible
Has commercial value due to its secrecy
Subject to reasonable measures to maintain its confidentiality
3. Protection and Enforcement
Contracts: NDAs and confidentiality clauses are the primary tools.
Civil remedies: Injunctions and damages for unauthorized use or disclosure.
Criminal sanctions: Possible in cases involving theft or industrial espionage.
Equitable remedies: Courts may order preventive measures to protect secrets.
4. International Commitments
The Philippines is a member of the WTO and complies with the TRIPS Agreement, which mandates protection for undisclosed information.
The country also adheres to various bilateral agreements incorporating trade secrets protections.
5. Practical Recommendations
Always have employees and business partners sign confidentiality and non-disclosure agreements.
Establish internal security policies to limit access to trade secrets.
Use physical and digital safeguards to protect information.
Take immediate legal action if trade secrets are compromised.
Summary Table
| Feature | Status in the Philippines |
|---|---|
| Dedicated Trade Secrets Law | ❌ No standalone law |
| IP Code protection | ✅ Yes, for undisclosed info |
| Contractual protection (NDAs) | ✅ Widely used and enforceable |
| Civil remedies (damages, injunctions) | ✅ Available |
| Criminal penalties | ✅ Possible for theft or breach |
| TRIPS compliance | ✅ Yes |
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