Confidential Disclosure Agreement German

German companies may also include confidentiality clauses in their employees` employment contracts. For the formal implementation of the directive, Germany will adopt a law on trade secrets. A first draft deed was presented on April 19, 2018 (the draft and a explanatory statement are available here). The proposed Trade Secrets Act provides rights against violators who have illegally acquired, used or disclosed a trade secret. In addition to claims for compensation, claims for omission and information, companies may also be entitled to recall and destroy products manufactured and marketed as a result of a breach of trade secrets (Article 5-7 of the Trade Secrets Bill). However, a simple financial compensation in the form of a fictitious licence fee may be paid to the aggrieved party (in place of another liability) if the offender has not acted in a culpable manner and if financial compensation for the aggrieved party appears satisfactory (Article 10 of the Trade Secrecy Act). Similarly, there are no claims to the extent that they would be excessive in light of the particular circumstances of the case, including (1) the value of trade secrecy, (2) business secrecy, (3) the offender`s conduct in acquiring, using or disclosing business secrecy, and (4) the effects of the unlawful use or disclosure of commercial secrecy (Article 8 of commercial secrecy). In addition to civil proceedings against an offender, criminal consequences remain possible (Article 22 of the Trade Secrets Bill). As Europe`s largest economy, Germany has strict legislation to guarantee the protection of trade secrets.

In Germany, trade and business secrets are protected by several regulatory frameworks and companies may also include confidentiality clauses in their contracts or even develop confidentiality agreements. The Federal Constitutional Court authorizes the inclusion of confidentiality clauses for the protection of trade and business secrets if: the recommended confidentiality measures depend on the particular circumstances of the case, such as the value of a particular business secret, its importance to business activities and the usual confidentiality measures in the cases concerned. In any event, the explanatory statement of the German Trade Secrets Act specifies that contractual provisions relating to the protection of secrecy as well as physical restrictions of access may be appropriate. To learn more about confidentiality agreements or to design a confidentiality agreement, see below. Among the laws that allow the establishment of confidentiality clauses are: in addition, the Trade Secret Act will contain special provisions on trade secrets.

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