A comparative study of how businesses exploit trade secrets

Abstract

Transactions involving intellectual property (IP) are the basis for commercialisation and monetisation of intellectual property rights (IPRs). This dissertation examines whether trade secrets can be utilised as a tool to raise capital, whilst highlighting the problems which may arise. The law protecting trade secrets aims at avoiding a competitor from obtaining confidential information which have a commercial value. Hence, the requirement of secrecy is satisfied when the information remains unknown. The consequences of the legislation for sensitive information and trade secrets are therefore something that businesses should be aware of. This study adopts a comparative approach between Malta, the United States (US) and European Member States as far as the law is concerned. This approach promotes both originality and innovation which in turn, would serve as a basis in providing recommendations for further exploration in this area. Further exploration in this area is vital as IP protection is essential for businesses, innovators and entrepreneurs. In fact, IP assets make up a sizeable amount of the entire worth of every organisation. This study concludes that trade secrets should not be seen as being incompatible with the exploitation and monetisation methods employed in the context of other IPRs. Even though the commercialisation of trade secrets is an opportunity for Malta, it is important to ensure that such actions do not violate the rules on competition law. Therefore, in order to urge owners of trade secrets to choose Maltese law as the governing legislation for any transactions, Malta should put into place the most practical and effective measures for the preservation and enforcement of trade secrets. In this area of law, enforcement actions should be quick and effective.