At long last, Germany transposed the Trade Secrets Directive
(“Directive”) into national law. Almost a year after
the implementation deadline, the
Geschäftsgeheimnisgesetz (Trade Secrets Act,
“Act”) came into effect on April 26, 2019. It replaces
the provisions of the Unfair Competition Act on misappropriation of
trade secrets and introduces new procedural rules for trade secret
litigation. Many perceive the Act as a game changer, and companies
doing business in Germany are well advised to take action rather
sooner than later.
1. What is the scope of the Act?
The Act defines the “trade secret” as “any
piece of information that is neither generally known nor readily
accessible, subject to reasonable steps to maintain
confidentiality.” Shortly before the bill passed parliament,
a third requirement was added according to which the holder must
have “a legitimate interest in maintaining
confidentiality.” This definition potentially covers any and
all business-related
