COMPENSATION FOR DAMAGES DUE TO BREACH OF TRADE SECRET
Keywords:
Keywords: breach of trade secret, protection of trade secret, compensation for damages.Abstract
Purpose
The purpose of the trade secret analysis is to point out the importance of legal sanctioning any act of unauthorized disclosure, duplication, acquisition, or use by third parties of confidential information legally controlled by the holder of a trade secret (natural or legal person). Modern living and working conditions, but also the wide application of technology have influenced the increase in the possibility of breaches of trade secrets, which indicates the need for its adequate protection.
Design / Methods / Approach
The application of the normative method in the analysis enables the study of theoretical, normative, but also practical problems related to the protection of trade secrets. The comparative legal method will determine the specifics and differences, but also what is general and common to legal systems in the field of violation and protection of trade secrets.
Findings
A trade secret is the result of many years of research and investment, and its holder should be provided with compensation for damage caused by its violation. In legal theory and practice, views are divided on whether the protection of trade secrets should be achieved within the framework of contractual, property, or criminal law. The only position is that the holder of a trade secret is entitled to compensation for lost profits and non-material damage due to breaches of trade secrets. Determining the amount of damages implies defining an objective criterion that takes into account the costs incurred by the holder of the trade secret in the field of research, but also the profit that the person who violates the trade secret achieves. The work analysis determines whether the existing legal rules in the field of protection of trade secrets have a stimulating effect on persons who could potentially misuse information that is a trade secret, and do so.
Originality / Value
The value of the work is the theoretical and practical contribution to the adequate protection of trade secrets. The theoretical significance is reflected in the improvement of existing knowledge in the field of protection of trade secrets. The practical significance of the work is in giving possible recommendations to the legislator and the regulator for shaping effective rules in this area. The assessment of the current rules governing the protection of trade secrets in our legal system, and proposing possible changes or acceptance of the concepts of developed countries, aims to create legal rules whose application would lead to adequate protection of trade secrets.
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