Trade Secrets Law in Uganda

Trade Secrets Law in Uganda

Uganda does not have a standalone Trade Secrets Law, but trade secrets are protected through a combination of:

Common law principles

Contract law (NDAs and confidentiality agreements)

Civil remedies for breach of confidence and unfair competition

Criminal law provisions against theft and breach of trust

Intellectual Property Act, 2014

International obligations, particularly TRIPS Agreement

1. Legal Framework Protecting Trade Secrets in Uganda

a. Intellectual Property Act, 2014

While primarily governing patents, trademarks, copyrights, and industrial designs, the Act acknowledges trade secrets as confidential business information.

The Act indirectly protects trade secrets as part of undisclosed information, but it does not provide a detailed regime specifically for trade secrets.

b. Common Law and Contract Law

Trade secrets protection mainly arises from:

Confidentiality agreements (NDAs)

Breach of confidence tort recognized under common law

Contractual remedies for unauthorized disclosure or misuse of confidential information

c. Criminal Law

The Penal Code Act criminalizes acts such as:

Theft

Fraud

Breach of trust

These can be applied in cases of misappropriation or unlawful disclosure of trade secrets.

d. Unfair Competition and Passing Off

Uganda’s laws recognize acts of unfair competition, which can include the misuse of trade secrets.

2. Definition of Trade Secrets

Trade secrets are generally understood as:

Information that is not generally known or easily accessible, has commercial value due to its secrecy, and where the owner has taken reasonable steps to keep it confidential.

3. Enforcement and Remedies

Civil remedies include injunctions and damages for breach of confidence.

Criminal sanctions may be applicable in cases of theft or fraud.

Contract enforcement is crucial for NDAs and confidentiality clauses.

Courts recognize the importance of protecting trade secrets for business competitiveness.

4. International Obligations

Uganda is a member of the World Trade Organization (WTO).

As a WTO member, Uganda is bound by the TRIPS Agreement, which requires protection of undisclosed information (trade secrets).

5. Practical Recommendations

Implement NDAs and confidentiality agreements with employees and partners.

Take reasonable steps to safeguard trade secrets physically and electronically.

Train employees about the importance of confidentiality.

Monitor and act promptly on suspected breaches.

Document all efforts to maintain secrecy as evidence in case of disputes.

Summary Table

Protection AspectStatus in Uganda
Dedicated Trade Secrets Law❌ No standalone law
IP Act recognition✅ Indirect protection
Contractual protections (NDAs)✅ Widely used and enforceable
Civil remedies✅ Available
Criminal penalties✅ Possible
TRIPS compliance✅ Yes

 

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