Trade Secrets.
Leveraging Your Trade Secrets.

Using your trade secrets wisely means not only protecting them but also enforcing and commercializing them. Proper management of your trade secrets can enhance the value of your business and maintain your competitive edge. Explore resources to help you manage your trade secrets effectively here.
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This page has information to help you understand what you need to do when it comes to managing your Trade Secrets - from maintenance and enforcement to making it a commercial asset.

This section delves into the practical steps for legal enforcement within the UAE context and underscores the importance of engaging with legal professionals for strategic advantage.

There are a number of players in the market that help with maintaining and protecting your rights, such as Dubai Court, DIFC Court, Federal Court or Dubai International Arbitration Centre.

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Legal Framework for Trade Secret Enforcement in the UAE

The UAE offers a robust legal framework to protect and enforce trade secrets.

Key laws include:

01. Federal Law No. 5 of 1985 on the Civil Transactions Law (UAE Civil Code), which helps protect trade secrets by setting rules on contract obligations and penalties for breaking those contracts.

02. Federal Decree Law No. (15) of 2020 Concerning the Penal Code, specifically Article 379, making it a criminal offense to disclose secrets obtained through employment or professional relationships without consent

03. Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations, reinforcing 
the confidentiality obligations of employees.

04. Federal Decree Law No. (11) of 2021 Concerning the Regulation and Protection of Industrial Property Rights, that defines ‘Undisclosed Information’ in section six.

Understanding these laws is fundamental to leveraging your trade secrets and formulating an enforcement strategy in case of breach.

Steps for Trade Secret Breach Enforcement

Step 1: Contain The Leak

If you suspect a breach, act quickly to stop any further spread of your trade secret. This could mean tightening internal security and sending legal warnings to those involved.

Step 2: Get Legal Advice

Consult with UAE legal experts to understand the breach's impact and to discuss possible actions 
you can take.

Seek legal advice

Step 3: Collect Relevant Evidence

Work with your legal team to gather evidence of the trade secret, its protection methods, the breach, and any damages caused. Strong evidence is essential for supporting your case in legal actions.

Step 4: Take Legal Action

Based on the breach and legal advice, take legal action which could involve civil lawsuits for stopping the breach and claiming damages, or criminal complaints for unauthorized sharing of secrets. The location for legal actions about trade secret breaches depends on where the trade secret is protected; this can be either Dubai Court, DIFC Court, Federal Court or Dubai International Arbitration Centre.

Commercializing Trade Secrets

Unlock the potential of your trade secrets to contribute directly to your business's revenue and growth. Find below a number of licensing and monetization strategies:

01. Licensing Agreements:

Consider licensing your trade secrets to other companies in exchange for royalties, balancing the revenue generation with the need to maintain secrecy. Just remember, this could expose your secrets if you don't have strong security measures in place.

02. Customized Monetization Models:

Create unique ways to make money from your trade secrets that fit your secrets and the market needs. For example:

a. Trade Secret as a Service (TSaaS):

Create a service where partners pay to use the benefits of a trade secret without getting direct access to it. For example, a company with a special analytics method could offer analysis services instead of giving out the method. Benefit: Keeps tight control over the trade secret and brings in steady income.

b. Dynamic Pricing Models Based on Trade Secret Outputs:

For trade secrets that create customized results, use flexible pricing models. For instance, a company with a secret method for making personalized materials could price based on the quality or features provided to the client. Benefit: Matches pricing with the customer's value, which could boost profits.

c. Revenue Sharing with Innovation Ecosystems:

Partner with innovation hubs like startups or research centers. Give them access to your trade secrets in return for a portion of the profits from new products or technologies they create. Benefit: Promotes innovation and lets you profit from new ideas inspired by your trade secret.

03. New Ventures and Products:

Use your trade secrets as the basis for starting new businesses or creating unique products, ensuring they give you a clear edge in the market.

04. Strategic Partnerships and Alliances:

Partner with others where your trade secrets can improve the product or service, benefiting both parties and helping to grow in the market.