Trade Secrets Law in Bhutan
Here’s an overview of the Trade Secrets Law in Bhutan:
🇧🇹 Trade Secrets Law in Bhutan
1. Legal Framework
Bhutan does not have a specific law dedicated exclusively to trade secrets.
Protection of trade secrets in Bhutan generally falls under:
General contract law (confidentiality agreements/NDAs)
Common law principles related to breach of confidence and unfair competition
Provisions in the Industrial Property Act of Bhutan (2010), which covers patents, trademarks, and industrial designs but does not explicitly regulate trade secrets.
Bhutan is a member of the World Intellectual Property Organization (WIPO) and a party to the TRIPS Agreement through its membership in the World Trade Organization (WTO) since 201 Bhutan is also a signatory to the Paris Convention for the Protection of Industrial Property.
2. Definition of Trade Secrets
Trade secrets are understood as confidential information, including formulas, practices, processes, designs, instruments, or compilations of information that:
Are not publicly known.
Provide a business advantage.
Are subject to reasonable efforts to maintain secrecy.
3. Protection Mechanisms
Protection relies on:
Confidentiality agreements between parties.
Contracts with employees and business partners including confidentiality and non-disclosure clauses.
Breach of confidence claims under common law principles.
Bhutanese courts can grant remedies such as injunctions and damages in case of unlawful disclosure.
4. Enforcement
Enforcement typically involves civil remedies.
Criminal penalties for trade secret theft or industrial espionage are not explicitly codified but may fall under general criminal laws related to theft or fraud.
The judiciary interprets trade secret disputes on a case-by-case basis.
5. International Compliance
Bhutan complies with the TRIPS Agreement which mandates protection of undisclosed information against unfair commercial use.
Bhutan participates in WIPO treaties and cooperates internationally on IP enforcement.
6. Practical Advice
Businesses should use non-disclosure agreements (NDAs) and confidentiality policies.
Implement internal security measures to protect sensitive information.
Consider legal advice when drafting contracts to include strong confidentiality provisions.
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