Trade Secrets Law in Singapore
Trade Secrets Law in Singapore
1. Legal Framework
Singapore does not have a specific statute titled "Trade Secrets Act," but trade secrets are well protected under common law and various statutory provisions. The key sources of protection are:
Common Law: Through the doctrine of breach of confidence.
Contract Law: Non-disclosure agreements (NDAs), confidentiality clauses.
Employment Law: Confidentiality duties during and post-employment.
Penal Code and Computer Misuse Act: Criminal penalties for theft or unauthorized access.
2. Definition of Trade Secrets
Under Singaporean law (based on case law), a trade secret or confidential information is:
Information that is not publicly known or easily accessible,
Has economic or strategic value to the business,
Has been subject to reasonable steps to maintain its secrecy.
This includes formulas, algorithms, customer lists, internal strategies, and technical know-how.
3. Common Law Protection (Breach of Confidence)
To establish a claim for breach of confidence, a plaintiff must prove:
The information had the necessary quality of confidence.
It was imparted in circumstances giving rise to an obligation of confidence.
There was unauthorized use or disclosure, causing harm.
These principles were affirmed in cases such as I-Admin (Singapore) Pte Ltd v Hong Ying Ting & Others [2020].
4. Contractual Protection
NDAs (Non-Disclosure Agreements) are enforceable and commonly used.
Employment contracts often include confidentiality clauses and post-employment restrictions.
Breach of such terms gives rise to civil remedies (injunctions, damages).
5. Statutory Protection
Penal Code (e.g. Section 378) – Theft of information, if physical or digital.
Computer Misuse Act – Unauthorized access, data theft, hacking.
Protection from Harassment Act – For misuse of confidential data in harassment.
6. Remedies
If a trade secret is misappropriated, the court can order:
Injunctions to stop further use/disclosure,
Damages or account of profits,
Delivery up or destruction of materials,
Criminal penalties for serious misconduct (e.g., under Computer Misuse Act).
Summary Table
| Aspect | Details |
|---|---|
| Legal Basis | Common law (breach of confidence), contract, statute |
| Definition | Confidential info with value, kept secret |
| Protection Mechanisms | NDAs, employment clauses, internal safeguards |
| Enforcement | Injunctions, damages, criminal prosecution (where applicable) |
| Key Statutes | Penal Code, Computer Misuse Act, Employment Act |
| International Obligation | Complies with TRIPS under WTO |
Final Note
Singapore has robust legal protection for trade secrets, even without a dedicated statute. However, proactive steps—such as using NDAs, protecting access to sensitive info, and employee training—are essential to ensure enforceability.
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