How to Protect the Trade Secrets in the UAE?

Trade secrets are one of the highly valuable assets for any business or corporation. In a competitive economy in the UAE, trade secrets are prestigious and highly valued. This gives a competitive commercial advantage to any business over its competitors. Some of the trade secrets are:

• Trade formulas
• Business strategies
• Client lists
• Unique manufacturing methodologies

The companies hire trade secret lawyers in Dubai to protect their secrets and to retain a competitive edge in marketing.

In today’s world, successful businesses and huge corporations rely on confidential information that allows them to stand out. The business keenly focuses on protecting these assets. They strongly oppose the misuse of assets.

The trade secrets are primarily governed by various laws. The two prominent ones are :

Federal Law No. 31 of 2021 on the Issuance of the Crimes and Penalties Law

It deals with the laws and specific provisions that criminalize unauthorized disclosures. It also exposes criminal activities like theft, misuse of confidential business information, and more. It suggests strict penalties for criminal activities in the UAE.

This law protects technical knowledge in the form of formulas, industrial processes, and commercially valuable data.

The regulation makes sure the companies enforce the legal rights and ensure confidential information remains private. It curbs the misuse of confidential data.

As per the UAE law, a trade secret is private information that should be kept hidden. It also refers to sensitive information that meets 3 conditions. If information meets these 3 terms, it is legally termed as a Trade Secret.

• It should not be publicly known and remain under wraps.
• It must have high commercial value.
• The company must take steps to keep it private and secret.

If these 3 are fulfilled, it is considered to be a trade secret. Such kind of information is legally protected against misuse.  Misuse can be done by competitors, employees, employers, or third parties. The companies here hire lawyers and consult legal firms if their information is misused.

The role of employment contracts is indispensable. Employment relationship is the key source of exposing or revealing trade secrets. Therefore, it is necessary to safeguard them from disclosures.

Besides, workers and employees have access to sensitive data during work, and it must be safeguarded. There is a need for structured confidentiality clauses that protect it.

A confidentiality clause should be a part of the employment agreement. According to the UAE law, employers are allowed to include a non-disclosure obligation clause. It will secure the confidential information even after the employee leaves the job or company.

Non-competing clause binds a worker to keep the business secret private even after the employment finishes. It also restrains the worker of the company from joining a competitor’s business for a certain time period.

In case if an employee exposes company confidential information to other employees can be restricted under the clause.

The UAE labor laws fully support the clause. However, there is a reasonable duration, scope, and location involved. The enforceability of clauses is needed in the employment contract before it is finalized.

If the employee exposes any information that was supposed to be kept confidential, the company can consult a legal firm in Dubai and take legal action against him or her.

Businesses frequently share confidential information with different stakeholders on various occasions. They may need to share information during negotiations, meetings, collaborations, partnerships, and supplier arrangements.

Companies and businesses heavily trust on legal experts to prevent unlawful sharing of their company’s information.

In this regard, proper documentation is needed. It makes sure the sensitive information is not exchanged unless needed. It also protects during commercial discussions that may fall into the wrong hands.

NDAs are declared to be binding contracts. They are mainly used in business dealings. They are valid, legitimate, and legally enforceable in nature.

They protect the sensitive information, especially during trade dealings. NDA’s outline the crucial information to remain private and who can access information.

It also specifies the penalties for breach of the clause. This urges the need for clear and concise legal documentation that ensures robust protection. Several companies use NDA’s at the start of every major partnership discussion or meeting.

Any misuse of confidential information is termed a serious criminal offense in the UAE. According to the federal law, there are strict penalties for individuals and businesses who steal disclose trade secrets without proper authorization.

There is a series of punitive measures that are imposed on employees, consultants, competitors, and third parties. It is categorized as criminal liability that allows companies to pursue civil claims for damages and losses.

In case a violation occurs, the employee reveals the confidential files are taken, client lists or shares sensitive information with other companies, the employee is penalized.

If a competitor acquires trade secrets via deceptive means, this may involve legal action. In case a high financial value risk is involved, severe penalties are pursued.

Businesses and organizations are always encouraged to draft robust internal control systems. It helps in protecting confidential information.

Companies that actively build internal control protect the information and also empower legal protections. The internal policies may include:

• Systems support limited access to data
• Digital protection tools
• Employees training sessions

Organizations and companies do have sensitive information that needs protection. Advanced cyber security systems, CCTV cameras, digital protection tools, and more are useful ways to securely store data. It will further support the internal system of the business.

The UAE cybercrime laws prohibit unauthorized access to sensitive information. It bans access to digital systems and protects them from theft and leakage. Companies use the following to safeguard the electronic data:

• End-to-end encryption,
• Use of Secure networks,
• Monitoring systems regularly
• Digital access logs,
• Use of protected Passwords,
• Regular security audits

All these efforts help in reducing the threat. It also prevents from digital breach that can cause a major economic setback. All these methods are used to identify any unusual activities.

The organizations may seek legal guidance from well-versed lawyers in the UAE. They have an understanding of the UAE laws concerning trade sectors. The lawyers in Dubai can assist businesses in safeguarding their interests and ensuring the trade secrets remain under wraps.