Frequently Asked Questions

In Indonesia, trade secrets are an essential aspect of intellectual property (IP) law. Governed by Law No. 30 of 2000 on Trade Secrets, the legal framework protects confidential business information from unauthorized use. This article explores the definition, scope, and legal protections surrounding trade secrets in Indonesia.

Definitionand Scope of Trade Secrets

Under Article 1 of Law No. 30 of 2000, a trade secret refers to information in the field of technology and/or business that is not known by the public, has economic value, and is subject to reasonable efforts to maintain its confidentiality. Examples of trade secrets include manufacturing processes, marketing strategies, client lists, formulas, and methods that provide a competitive advantage.

Thelaw outlines three key characteristics of trade secrets:

1. Confidentiality:The information must not be publicly known or easily accessible.
2. Economic Value:The information should provide a business advantage or potential financial benefit.
3. Protective Measures:The holder must take reasonable steps to keep the information confidential.

Legal Protections

Trade secrets in Indonesia are protected by granting the holder the right to prevent unauthorized parties from acquiring, using, or disclosing the information without consent. The following legal remedies are available:

1. Civil Actions:Trade secret holders may file civil lawsuits for compensation and injunctions to prevent further misuse.
2. Criminal Sanctions:Unauthorized disclosure or use of trade secrets may lead to imprisonment or fines under Indonesian law.

Additionally,the law emphasizes contractual measures, such as non-disclosure agreements (NDAs), to safeguard trade secrets.

Duration of Protection

Unlike patents, which have a fixed duration, trade secrets remain protected indefinitely as long as they meet the criteria of confidentiality, economic value, and protective measures. This indefinite protection incentivizes businesses to continuously safeguard their confidential information.

Exceptionsand Limitations

There are notable exceptions to trade secret protections:

• Independent Discovery:If another party independently discovers the same information through legal means, the original holder’s rights are not infringed.
• Reverse Engineering:If the trade secret can be deduced from publicly available products without violating confidentiality, it is not considered an infringement.

Challenges in Enforcement

Despite the legal framework, enforcing trade secret rights in Indonesia can be challenging due to:

• Evidence Gathering:Proving misappropriation requires substantial evidence.
• Judicial Expertise:Complex cases may require judges with specialized knowledge of IP law.
• Public Awareness:Businesses may lack awareness of their rights and the necessary steps to protect trade secrets.

Practical Steps for Protection

To enhance protection, businesses should:

1. Implement NDAs:Use legally binding contracts with employees, partners, and suppliers.
2. Restrict Access:Limit access to sensitive information based on necessity.
3. Conduct Training:Educate employees on the importance of trade secret protection.
4. Document Protective Measures:Keep records of the efforts made to maintain confidentiality.

Trade secrets are a vital aspect of Indonesia’s intellectual property landscape, offering indefinite protection to confidential business information. By understanding the legal framework and adopting practical measures, businesses can better safeguard their competitive edge in today’s dynamic market. Awareness and proactive steps are key to ensuring that trade secrets remain protected under Indonesian law.

Contact us at khudewi@rhp.co.id or rhp@rhp.co.id for further information on Trade secret protection in Indonesia.

By: Khurnia Hudewi
Mobile Phone: +62 878 8651 1479