Since July 2, 2019, trade secrets are explicitly regulated in Luxembourg through the Law of 26 June 2019 on the protection of undisclosed know-how and commercial information (business secrets) against unlawful acquisition, use and disclosure.
To respond to the need for harmonization across borders, the Directive (EU) 2016/943 of the European Parliament and of the Council of June 8, 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure brought both a common definition for trade secrets as well as more legal clarity as to the conditions guaranteeing the protection of a trade secret across the European Union.
The Law of 26 June 2019 on trade secrets (Trade Secrets Act) has finally transposed the abovementioned directive. While trade secrets used to be defined by case law, the new law now provides a legal definition of trade secrets, thereby allowing for further legal stability.
As provided by the directive, the Trade Secrets Act defines a "trade secret" as "information which meets all of the following requirements:
- It is secret in the sense that it is not, as a body or in the precise configuration and assembly of its components, generally known among or readily accessible to persons within the circles that normally deal with the kind of information in question.
- It has commercial value because it is secret.
- It has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it secret.
This definition is close to the definition of Section 39(2) of the TRIPS Agreement:
Reference should also be made to Section 1 (i) of the Commission Regulation (EC) 316/2014 of 21 March 2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements: "know-how" means a package of practical information resulting from experience and testing which is:
- Secret – that is, not generally known or easily accessible.
- Substantial – that is, significant and useful for the production of the contract products.
- Identified – that is, described in a sufficiently comprehensive manner so as to make it possible to verify that it fulfills the criteria of secrecy and substantiality.