Trade Secrets Law in Sweden
Here’s a detailed overview of Trade Secrets Law in Sweden:
Trade Secrets Law in Sweden
1. Legal Framework
Sweden protects trade secrets primarily through:
The Swedish Trade Secrets Act (Lag (2018:558) om företagshemligheter), effective since July 1, 2018.
Implementation of the EU Trade Secrets Directive (Directive (EU) 2016/943).
Complementary protection via contract law (e.g., NDAs) and unfair competition law.
Relevant provisions in criminal law related to economic espionage and theft.
2. Definition of Trade Secret
Under the Swedish Trade Secrets Act, a trade secret is defined as information that:
Is secret in the sense that it is not generally known or readily accessible to persons normally dealing with the kind of information in question.
Has commercial value because it is secret.
Has been subject to reasonable steps by the rightful holder to keep it secret.
The law covers both technical and non-technical information, including business strategies, formulas, processes, designs, customer lists, and financial data.
3. Protection and Prohibited Acts
The Act prohibits:
Acquisition of trade secrets by unlawful means (e.g., theft, bribery, deception, breach of confidentiality).
Use or disclosure of trade secrets without consent.
Retention of trade secrets obtained unlawfully.
4. Legal Remedies
Trade secret holders may seek:
Injunctions to prevent further use or disclosure.
Damages to compensate for losses suffered.
Destruction or recall of products made using trade secrets.
Disclosure of profits made by the infringer.
Criminal penalties for serious offenses.
5. Contractual Protection
Non-disclosure agreements (NDAs) and confidentiality clauses are commonly used.
Employment contracts typically include confidentiality and sometimes non-compete provisions (which are strictly regulated under Swedish law).
Breach of contract claims can be used to enforce trade secret protection.
6. Enforcement and Judicial Practice
Swedish courts are experienced in handling trade secret disputes.
The law provides for preliminary injunctions to prevent damage during litigation.
Evidence gathering is supported by the possibility of court-ordered discovery within limits.
Swedish criminal law may apply in cases of industrial espionage or theft.
7. Best Practices for Businesses
Implement clear internal policies on confidentiality.
Use NDAs and confidentiality clauses consistently.
Limit access to trade secrets on a “need to know” basis.
Document steps taken to protect information.
Train employees on the importance of trade secret protection.
Summary
| Aspect | Details |
|---|---|
| Dedicated Law | Yes — Swedish Trade Secrets Act (2018) |
| Definition | Secret, commercial value, subject to protection measures |
| Prohibited Conduct | Unlawful acquisition, use, disclosure, retention |
| Remedies | Injunctions, damages, destruction, profit disclosure |
| Contractual Support | NDAs, confidentiality clauses, employment contracts |
| Enforcement | Civil and criminal courts |
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