Overview
Trade Secret shall mean information in the field of technology and/or business that is not known by the public and has economic values as it is useful in business activities, and the confidentiality of which is maintained by its owner.
Trade secrets are:
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All information/invention which has economic values. |
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Information is not known by the public in general. |
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Information is used in technology or business. |
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Information is used in commercial activities. |
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The secrecy or confidentiality of the information is being maintained in appropriate efforts. |
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Only known by a certain of people. |
Scope of Trade Secrets
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Methods of production. |
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Methods of processing (preparation). |
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Methods of selling. |
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Methods of management. |
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Invention. |
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Recipe formula of foods/beverages/medicines. |
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List of customers/clients. |
Rights of owner of trade secret
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To personally use his trade secret. |
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To grant a license to other parties. |
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To prohibit other parties without permission to : use his Trade Secret and to disclose the Trade Secret to any third party for commercial purposes. |
Transfer of rights and license
The Right to Trade Secret may be transferred by:
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Inheritance, donation, testament, written agreement or other reasons recognized by the Law. |
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Furnished with the documents on the transfer. |
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Must be recorded. |
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In terms of not being recorded at the Directorate General, it shall have not any legal consequences on any third party. |
License of Trade Secret
1). A licensing agreement must be recorded at the Directorate General.
A licensing agreement shall have legal consequences on any third party
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Licensee shall not grant further license to any third party without licensor’s permission.
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Licensor shall not grant license to any other third party in terms that the agreement constitutes exclusive license.
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Either licensor or Licensee may file a lawsuit in terms that one of the concerned parties is conducting a disavowal (breaks the agreement). A lawsuit may be filed to District Court by reclusive session in the purpose of : claim for damages, and or the ceasing of all acts in relation to trade secret.
2). Trade secret agreement
A licensing agreement shall not contain any provisions that may directly or indirectly damage the Indonesian economy e.g. makes a royalty provision one-sidedly, forces the use of raw material one-sidedly, unfair veiled competition, etc
The infringement of trade secret
An infringement on Trade Secret takes place when a person deliberately :
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Discloses the Trade Secret. |
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Breaks the agreement. |
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Breaks the obligation, either written or not, to maintain the confidentiality of the relevant Trade Secret. |
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Obtains or possesses the Trade Secret in a manner that is contrary to the prevailing laws and regulations. |
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Any actions shall not be deemed an infringement on a Trade Secret if: |
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The disclosure of the Trade Secret or the use of the Trade Secret is based on the interest for the security and defense, health, or safety of the public. |
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The reverse engineering of a product that is produced from the use of the Trade Secret of another person is solely conducted for the interest of making further development of relevant products. |
References :
- Short course in Intellectual Property Right (Elementary) - Asian Law Group Pty Ltd. - Ausaid.
- Directorate General of Intellectual Property Right - Indonesian Ministerial of Justice and Human Right.