It can say that in business, security is always the top priority. Business secrets are considered as diamond bars of the business. So what information is protected as a business secret? Today, LSX Lawfirm will give you an article about “What information is protected as a business secret in Vietnam?”, as follows:
Legal grounds
Law on Intellectual Property 2005, amended and supplemented in 2009
Decree 105/2006/ND-CP
What is a trade secret?
Accordingly to Clause 23, Article 4 of the 2005 Intellectual Property Law,
Business secret means information obtained from financial or intellectual investment activities; undisclosed and available for business use. This is consider an extremely important factor affecting the business operations of an enterprise.
The owner of a business secret is an organization; the individual legally obtains the trade secret. And keep that business secret confidential.
For this case, the business secret that the employer hires; the party assigned to perform the assigned task obtained in the course of performing the hired work; or assigned under the ownership of the lessee or the assignor; unless otherwise agreed by the parties.
Conditions for protection of business secrets
A business secret is protected when the following conditions are satisfied
Not common sense and not easily obtained.
When used in business, it gives the holder of a business secret advantage over someone who does not hold or use the trade secret.
To keep confidential by the owner by necessary measures so that the business secret not disclosed, and not easily accessible.
What type of information can be protected as a business secret?
Almost any type of information can be a trade secret:
(1) A trade secret may include information relating to a recipe or product sample; device or another set of information that used over a certain period of time in a business.
(2) Generally, a trade secret a technical information used in the production of goods.
(3) Trade secrets that may relate to marketing, export, or sales strategies; or document storage methods or business management processes and procedures; including the software used for business activities.
Other examples of potential trade secrets may include; product features, the purchase price of raw materials, test data; drawings or technical sketches, manufacturing specifications; exclusive recipes calculation formulas, the contents of the laboratory notebook; the company’s salary structure, product prices and spending levels for advertising activities; source code, machine code, databases, and electronic data sets; the contract contains details of market constraints; promotional or marketing materials are being develope.
Which objects are not protected as trade secrets?
Accordingly to the provisions of Clause 23, Article 4 of the Intellectual Property Law:
“Business secret is information obtained from financial and intellectual investment activities; undisclosed and available for business use.”
A business secret protected if it meets the conditions specified in Article 84 of the IP Law:
– is not common sense and is not easily obtain.
– when used in business will give the holder of a business secret advantage over those who do not hold or do not use the trade secret.
– protect the owner by the necessary measures so that the trade secret not disclosed and not easily accessible.
However, not all business secrets are subject to protection by the IP Law, but according to the provisions of Article 85 of this Law, the following confidential information not protected in the name of business secrets:
– Firstly, Secrets of identity;
– Secondly, Secrets of state management;
– Thirdly, National defense and security secrets; information;
– Finally, Other secrets not related to business.
Why is it important to protect business secrets?
- Firstly, Trade secret legislation wants to uphold and promote ethical standards and fair trade.
- Secondly, The primary purpose of trade secret legislation is to provide an incentive for innovative businesses by protecting the considerable time and capital invested in developing innovations that give them a competitive advantage. art, both technically and commercially, especially creations that not patented or have not yet qualified for a patent.
- Thirdly, If not protected by the law on trade secrets, the competitors of that business can use these innovations without incurring any costs and risks in the research process. research and develop these innovations.
What acts infringe on business secrets?
Accordingly to Article 127 of the Law on Intellectual Property, acts of infringing upon rights to business secrets are as follows:
- Access and collect information belonging to a business secret by resisting the security measures of the person who lawfully controls the business secret;
- Disclosing or using information belonging to a business secret without the permission of the owner of the business secret;
- Violating confidentiality contracts or defrauding, inducing, bribing, coercing, seducing, taking advantage of the trust of persons with confidentiality obligations in order to access, collect or disclose business secrets;
- Access and collect information belonging to the applicant’s business secret according to the procedures for applying for a business license or circulating products by resisting the security measures of the competent authority;
- Using or disclosing a business secret despite knowing or being oblige to know such business secret obtained by another person in connection with one of the acts specified at Points a, b, c, and d Clause this;
- Failure to perform confidentiality obligations specified in Article 128 of this Law.
In case of infringement of a business secret, how it be handled?
Violators who commit one of the above-mentioned acts of infringing upon business secrets will fined from VND 5,000,000 to VND 10,000,000.
So Violators will fined from VND 10,000,000 to VND 20,000,000 if:
- Firstly, Using trade secrets to produce and circulate goods; providing services from two provinces; centrally-run cities or higher;
- Secondly, The important information of the business disclosed and provided to the competitors of that business.
In addition to fines, violators may also have exhibits confiscated; means used to commit the breach, including confiscation of all profits derived from the commission of the offense.
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Above is LSX Lawfirm’s advice on the content of the problem “What information is protected as a business secret in Vietnam?“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
The owner of a business secret does not have the right to prohibit others from performing the following acts:
– Firstly, Reveal; use a trade secret obtained without knowing it, and under no obligation to know that the trade secret was obtained illegally by another person;
– Secondly, Disclosure of confidential data to protect the public;
Conspiracy of a business secret is an act of accessing and collecting information belonging to a business secret by resisting the security measures of the lawful owner of that business secret; disclosure act; use information belonging to a business secret without the permission of the owner of the business secret; breach of confidentiality contract or fraud; taking advantage of the trust of people with confidentiality obligations to gain access; collect and disclose information belonging to the business secret of the owner of such business secret; approach behavior; collect information belonging to another person’s business secret when he/she carries out procedures in accordance with business-related laws, etc.
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