Imagine losing your competitive edge because a secret recipe, marketing strategy, or customer list was leaked to a competitor. How would your business recover? This scenario highlights the importance of protecting trade secrets—confidential information that gives businesses an advantage in the market.
Trade secrets can include a wide range of valuable information, such as methods of production, sales strategies, customer databases, source codes, and advertising plans. Keeping this information private allows businesses to maintain their competitive edge and secure economic benefits.
How to Protect Trade Secrets
To safeguard trade secrets, companies must take proactive steps to ensure confidentiality. Here are three key measures every business should consider:
- Internal Policies and Training
Establish clear policies on handling trade secrets and other proprietary information. Regular training sessions can help employees understand the importance of confidentiality and the steps they should take to protect sensitive data. - Non-Disclosure Agreements (NDAs)
Employees, suppliers, and other partners should sign NDAs to ensure they do not share sensitive information with unauthorized parties. - Restricting Access
Companies can use tools like ID badges or passwords to limit access physically and digitally to sensitive information.
When a Trade Secret Is Leaked
If a trade secret is leaked or disclosed without permission, the company can take legal action. This might include filing a civil lawsuit to claim damages or asking the court to stop the misuse of the trade secret. Civil cases are handled in District Courts, and hearings can be closed to the public. Companies can also report the violation to the police to pursue criminal charges.
One of the biggest hurdles in trade secret cases is proving that a leak occurred and caused harm. Many cases involve former employees who join competitors and use the same marketing strategies, recipes, or customer information they had access to in their previous roles.
In Indonesia, criminal cases require at least two types of evidence to prove guilt. These can include:
- Witnesses
- Expert(s) statements
- Letters
- Indications
- Suspect statements
For example, in cases involving leaked recipes or customer lists, evidence might include product samples, customer databases, or witness testimonies. However, these alone are not enough. Companies must also prove that the leaked information was valuable, actively used by the competitor, and caused financial losses.
Why This Matters in Indonesia
Indonesia’s rapidly growing economy makes trade secrets more critical than ever. From local food businesses to cutting-edge tech startups, protecting sensitive information is essential for maintaining a competitive edge in a dynamic market. However, enforcing trade secret protections can be challenging due to the complex legal requirements for proving violations.
Prevention Is Key
While legal action is an option, prevention is the best strategy. By implementing robust protection measures, businesses can minimize the risk of leaks and maintain their competitive advantage.
As Indonesia continues to develop as a center for innovation, companies must prioritize safeguarding their trade secrets. After all, the cost of losing them could far outweigh the investment in protecting them.
Lia Alizia, S.H., Advokat/Praktisi Hukum Ketenagakerjaan
