The Object of Commercial Secret
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Abstract
Commercial secret has a broad protection under the laws of the Republic of Lithuania. For example:
Managing Director, Board members, members from Observers Council are obliged to secure commercial secrets of the company they disclosed during their work time, – states the Corporate Act of the Republic of Lithuania.
The Civil code makes prohibition for disclosure or usage of any confidential information, the third party learned or got during negotiations.
Disclosure of commercial or technological secrets or transfer of secret information to a rival company deems to be outrage under the Labor code of the Republic of Lithuania.
At first glance, it is obvious, that commercial secrets enjoy fully enough protection under the laws. Nevertheless, sometimes it is not enough to have a legal framework for protection of confidential information and to prove the breach of the law. On that cases it is very important to know the exact content of commercial secret and answer the question what is the object of commercial secrets of the company. It means that lawyer shall analyze provisions for the information to be accepted as confidential. On that case “good practice” of what we usually treat as a commercial secret is not the correct way to prove breach of confidential agreement.
The successful protection of commercial secrets requires a purposeful and legally based system, what ensures the protection. On that purpose companies usually create a list of confidential information and informs it’s employees. The decision of what is confidential information at the company comes from Board of members. Thus, status of commercial secret may be granted for various sorts of information formalized as a commercial information of the company – from marketing strategy, technologies, knowledge, partners, to the contracts and other secret information. In legal terms, commercial secret may be squeezed-out of any information of the company, if only it fits two criteria. First – information shall have a real or potential value. And, second, information shall be legally formalized and the owner shall take actions to protect such an information. There are few exceptions made for corporate information, which becomes mandatory public under the laws.
Managing Director, Board members, members from Observers Council are obliged to secure commercial secrets of the company they disclosed during their work time, – states the Corporate Act of the Republic of Lithuania.
The Civil code makes prohibition for disclosure or usage of any confidential information, the third party learned or got during negotiations.
Disclosure of commercial or technological secrets or transfer of secret information to a rival company deems to be outrage under the Labor code of the Republic of Lithuania.
At first glance, it is obvious, that commercial secrets enjoy fully enough protection under the laws. Nevertheless, sometimes it is not enough to have a legal framework for protection of confidential information and to prove the breach of the law. On that cases it is very important to know the exact content of commercial secret and answer the question what is the object of commercial secrets of the company. It means that lawyer shall analyze provisions for the information to be accepted as confidential. On that case “good practice” of what we usually treat as a commercial secret is not the correct way to prove breach of confidential agreement.
The successful protection of commercial secrets requires a purposeful and legally based system, what ensures the protection. On that purpose companies usually create a list of confidential information and informs it’s employees. The decision of what is confidential information at the company comes from Board of members. Thus, status of commercial secret may be granted for various sorts of information formalized as a commercial information of the company – from marketing strategy, technologies, knowledge, partners, to the contracts and other secret information. In legal terms, commercial secret may be squeezed-out of any information of the company, if only it fits two criteria. First – information shall have a real or potential value. And, second, information shall be legally formalized and the owner shall take actions to protect such an information. There are few exceptions made for corporate information, which becomes mandatory public under the laws.
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Please see Copyright and Licence Agreement for further details.
