New Act On Trade Secrets And Know-How In Hungary

The Directive 2016/943 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure ("Directive") was adopted by the European Parliament and the Council on 8 June 2016 and entered into force on 5 July 2016.

The reason behind the adaptation of the Directive was that there is a great divergence between the regulations of Member States on trade secrets and know-how, thus, the protection of trade secrets is fragmented throughout the EU, hampering innovation and hindering the effective functioning of the internal market. The aim of the Directive is to harmonize the respective national regulations on trade secrets, however, the Member States are free to grant higher level of protection. The Directive includes detailed definition for trade secrets and prohibits the unlawful acquisition, use and disclosure thereof.