Trade Secrets Law in United Arab Emirates
Here’s a detailed overview of Trade Secrets Law in the United Arab Emirates (UAE):
🇦🇪 Trade Secrets Law in the United Arab Emirates
1. Legal Framework
The UAE protects trade secrets primarily through:
Federal Law No. 31 of 2021 on the Protection of Commercial Secrets (Trade Secrets Law) — this is the first dedicated legislation on trade secrets in the UAE, effective from 2022.
Federal Law No. 5 of 1985 on Civil Transactions (Civil Code) — covers contractual obligations including confidentiality.
Federal Law No. 18 of 1981 on Commercial Transactions.
Labor Law — regulates employees’ confidentiality obligations.
Penal Code — criminalizes unlawful disclosure or use of trade secrets in some cases.
Relevant free zone regulations may also apply.
2. Definition of Trade Secret
Under Federal Law No. 31 of 2021, a trade secret is defined as any information including but not limited to:
A formula, pattern, compilation, program, device, method, technique, or process,
That is not generally known or easily accessible to persons normally dealing with the information,
Has commercial value because it is secret,
Subject to reasonable measures by the rightful owner to keep it secret.
3. Prohibited Acts
The law prohibits:
Acquisition of trade secrets by unlawful means (e.g., theft, bribery, deception, breach of confidentiality).
Use or disclosure of trade secrets without authorization.
Retention or failure to return trade secrets after the end of a business relationship.
Acts that cause economic harm to the owner.
4. Legal Remedies
Trade secret owners can seek:
Injunctions to prevent or stop unlawful use or disclosure.
Damages for losses caused by misappropriation.
Seizure and destruction of goods made or used unlawfully.
Criminal penalties including fines and imprisonment.
Compensation for reputational harm.
5. Contractual Protection
Use of Non-Disclosure Agreements (NDAs) and confidentiality clauses in contracts.
Employment contracts often include strict confidentiality and post-employment obligations.
Agreements must comply with UAE labor and commercial laws to be enforceable.
6. Enforcement
Cases may be brought before UAE civil courts or the Dubai International Financial Centre (DIFC) courts (which have their own commercial laws).
UAE courts are known to enforce trade secret protections robustly.
Administrative actions and inspections can be carried out by relevant authorities.
7. Best Practices
Implement robust internal security policies.
Use clear confidentiality markings.
Limit access to sensitive information.
Train employees and partners about confidentiality obligations.
Keep detailed records of trade secret protection efforts.
Summary
| Aspect | Details |
|---|---|
| Dedicated Trade Secret Law | Yes — Federal Law No. 31 of 2021 |
| Definition | Secret info with commercial value, protected by measures |
| Prohibited Conduct | Unauthorized acquisition, use, disclosure |
| Remedies | Injunctions, damages, criminal penalties, destruction |
| Contractual Tools | NDAs, confidentiality clauses, employment contracts |
| Enforcement Bodies | Civil courts, DIFC courts, administrative authorities |
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