What legal protections does Vietnamese law provide for trade secrets?

Businesses use trade secrets (know-how) to develop innovative, high-quality goods and services for consumers. This is a significant element influencing how effectively a business performs. Competitors frequently come up with some methods to get this information. As a result, maintaining trade secrets is a constant challenge for businesses.

Definition of a trade secret (know-how)

A trade secret is any information that has not yet been disclosed that was obtained by intellectual or financial investment activities and that can be used in business. Thus, it is clear that in order to qualify as a trade secret, something must satisfy the following three criteria:

1. It is a result of activities of financial, intellectual, research, or creative investment;
2. Not being previously disclosed to any business in the same field or to the public, the consumer community; and
3. Being able to be used in business, creating economic benefits for the owner.

Conditions for Trade Secret Protection

If a trade secret meets the following criteria listed below, it will be protected:

1. It is neither common knowledge nor easily obtainable;
2. When being used in business, it will give the holder of a trade secret advantage over those who do not hold or do not use such trade secrets; and
3. Being secured by the owner by necessary means so that the secrets will not be disclosed nor be easily accessible.

Businesses should also be aware of objects not entitled to trade secret protection, such as:

1. Personal identification secrets;
2. State management secrets;
3. National defense and security secrets; and
4. Other confidential information is unrelated to business.

However, a business can only be protected with a trade secret if it has lawfully obtained and maintained its secrets.

Industrial property rights to a trade secret must be established legally through financial, intellectual, or other legal means. Therefore, businesses do not need to go through registration processes to keep their trade secrets.

Acts of trade secret infringement

The following acts are considered violations of the right to trade secrets:

• Accessing or obtaining information about a trade secret by violating secrecy measures implemented by lawful owners of such trade secrets.
• Disclosing or even using information about a trade secret without the permission of the trade secret’s owner
• Breaching confidentiality agreements or deceiving, inducing, buying off, forcing, seducing, or abusing the trust of those in charge of confidentiality to access, acquire, or disclose a trade secret.
• Accessing or obtaining information about an applicant’s trade secrets for a license to trade in or circulate products by violating secrecy-keeping measures imposed by competent authorities.
• Using or disclosing trade secrets while knowing or having reason to believe that they have been obtained by others engaged in one of the aforementioned acts.
• Failure to meet the obligation to keep test data confidential.

The protection period for a trade secret (know-how)

The period of protection for a trade secret varies depending on the form of protection.

• In the case of automatic protection, a trade secret is protected indefinitely until being public.
• In the case of protection as an invention, the term of protection of a trade secret is 20 years from the date of application and if this period expires, the trade secrets, in the name of an invention will be publicly announced.

To sum up, a trade secret is essential to success and helps establish an organization distinct from its rivals. Enterprises must therefore be aware of the legal requirements governing the protection of trade secrets as well as the behaviors that are deemed to violate trade secret rights in order to protect company secrets.

*** Other Articles***

– You could visit here to see the Trademark Registration in Vietnam.

– You can also check the Vietnam Trademark Law: Detailed Guide And Legal Notes.

– You could check Questions of filing trademark in Vietnam: POA, Trademark requirement and trademark fee in Vietnam.

Contact AAA IPRIGHT: Email: [email protected]

Or sending your inquiry by filling the form: