Trade Secrets Law in New Zealand
In New Zealand, trade secrets are protected primarily under common law principles of confidential information, rather than through a specific statute titled "Trade Secrets Law." Here's a breakdown of how trade secrets are handled legally in New Zealand:
π What is a Trade Secret?
A trade secret refers to confidential business information that gives a company a competitive edge, such as:
Formulas
Manufacturing processes
Business strategies
Customer/supplier lists
Pricing information
ποΈ Legal Protection of Trade Secrets in New Zealand
1. Common Law β Breach of Confidence
New Zealand protects trade secrets primarily through the law of breach of confidence. This is a judge-made law (case law) and is applicable when:
The information is confidential in nature.
It was disclosed in circumstances importing an obligation of confidence.
There is unauthorised use or disclosure of that information.
Famous case: Saltman Engineering Co Ltd v Campbell Engineering Co Ltd [1948] (adopted in NZ decisions)
2. Employment Agreements
Employers often use employment contracts to protect trade secrets, including:
Confidentiality clauses
Non-disclosure agreements (NDAs)
Post-employment restraints (within reason under NZ employment law)
3. Criminal Law
In cases of theft or misappropriation of trade secrets (e.g., hacking or physical theft), criminal charges under the Crimes Act 1961 (such as theft or accessing computer systems without authorisation) may apply.
4. Fair Trading Act 1986
If someone uses a trade secret in a misleading way, there may be a case under misleading or deceptive conduct provisions.
5. Intellectual Property (IP) Alternatives
Trade secrets are one form of IP protection. Alternatives include:
Patents (but require public disclosure)
Copyright
Trademarks
βοΈ Remedies for Misuse
If a trade secret is misused, courts may grant:
Injunctions to stop further misuse
Damages or compensation
Delivery or destruction of documents/materials
Account of profits from unauthorised use
π International Agreements
New Zealand is a party to:
TRIPS Agreement (WTO) β Requires trade secret protection
CPTPP β Includes provisions to protect undisclosed information
β Summary
New Zealand protects trade secrets through:
Common law (breach of confidence)
Contract law (NDAs, employment agreements)
Statutory support (in specific cases, e.g., Crimes Act)
While thereβs no specific Trade Secrets Act, the legal framework effectively safeguards confidential business information.
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