Trade Secrets In Canada
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FAQ
The Trade Secrets Act in Canada protects confidential information that provides economic benefits to businesses. This legislation allows companies to take action against those who unlawfully obtain or disclose trade secrets. Familiarizing yourself with the Trade Secrets Act is essential for businesses to safeguard their trade secrets in Canada effectively.
In order for information to be protected as trade secret, it shall meet the following criteria. The information must be secret (i.e., it is not generally known among, or readily accessible, to circles that normally deal with the kind of information in question). Absolute secrecy is not required.
In Canada and the United States, there is no formal registration process for obtaining protection for a trade secret. However as described above the owner is subject to reasonable efforts to maintain it's secrecy.
Trade secrets include any valuable business information that derives its value from secrecy. In Canada, there is no formal intellectual property process for protecting a trade secret. To protect and benefit from trade secrets, a business must: Obtain business value from the secret. Keep the business information a ...
While the ?reasonable? steps may depend on the circumstances of each case, marking confidential documents, placing physical and electronic restrictions to access trade secret information, introducing a systematic monitoring system and raising awareness of employees are the measures taken to safeguard trade secrets.
Trade secrets are protected in Canada by contract or by tort where a duty of confidence or fiduciary duty is owed by a recipient to a discloser of confidential business information. Misappropriating confidential information can lead to criminal sanctions for fraud.