Trade Secrets Law in Uruguay
Trade Secrets Law in Uruguay
Overview
Trade secrets in Uruguay are considered valuable confidential business information that gives a company or individual a competitive edge. The law aims to protect such secrets from unauthorized disclosure, use, or acquisition.
What Qualifies as a Trade Secret?
Information qualifies as a trade secret in Uruguay if it meets these key conditions:
Confidentiality: The information is not generally known or easily accessible by others.
Commercial Value: The information has actual or potential economic value because it is secret.
Reasonable Measures: The owner takes reasonable steps to keep it secret, such as limiting access or using confidentiality agreements.
Examples of trade secrets include:
Manufacturing processes
Customer lists
Business plans or strategies
Financial data
Formulas, recipes, or designs
Software source code
Legal Protection of Trade Secrets
Trade secret protection in Uruguay arises mainly from:
Contract Law
Confidentiality clauses in employment contracts, service agreements, and non-disclosure agreements (NDAs).
These contracts restrict employees, contractors, and partners from revealing or using confidential information.
Civil Liability and Unfair Competition
Unauthorized acquisition, use, or disclosure of trade secrets can be considered unfair competition.
The injured party may claim damages or seek injunctions through civil courts.
Criminal Sanctions
In some cases, misappropriation of trade secrets may be punishable under criminal law, especially when it involves theft, fraud, or industrial espionage.
Key Obligations for Protecting Trade Secrets
Owners of trade secrets in Uruguay should:
Identify and classify confidential information clearly.
Restrict access only to those who need to know.
Use confidentiality agreements with employees, partners, and third parties.
Implement physical and digital security measures.
Remedies for Breach or Misappropriation
If a trade secret is unlawfully used or disclosed, the owner can pursue:
Injunctions: To stop further use or disclosure.
Damages: Compensation for losses suffered.
Restitution: Return or destruction of confidential materials.
Criminal prosecution: When applicable.
Limitations
Protection does not apply when:
Information becomes public without breach.
Information is independently developed.
Information is lawfully obtained from other sources.
Use of information is through legitimate reverse engineering.
Summary Table
| Aspect | Description |
|---|---|
| Definition | Confidential, valuable business information |
| Protection Mechanisms | Contracts, civil liability, unfair competition |
| Enforcement | Injunctions, damages, criminal sanctions |
| Owner’s Duties | Maintain secrecy, restrict access, agreements |
| Exceptions | Public knowledge, independent development |
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