International confidentiality disputes are conflicts regarding the breach of NDAs or trade secrets by a business partner, former employee, or competitor. At Musch Legal, we are seeing an increase in trade secret disputes due to employee mobility and cross-border collaborations. Damage claims run into tens of millions, particularly among technology companies. Acting quickly via injunction is crucial before information spreads.
What is the legal problem? (When does a breach occur?)
Breaches of NDAs and trade secrets arise from employees switching to competitors, business partners using information outside the scope, cyberattacks, and suppliers leaking to third parties. For the company: difficult to prove and requires quick action. Dissemination via the internet is irreversible within hours. For effective enforcement: clear classification of trade secrets, strong measures, and expedited summary proceedings.
What does the law say? (Which frameworks protect secrets?)
EU Trade Secrets Directive 2016/943 and Trade Secrets Protection Act (Wbb) since 23 October 2018: protection of secret, commercially valuable information for which reasonable measures have been taken (Article 1 Wbb). Unlawful acquisition, use, or disclosure (Article 2 Wbb). Civil enforcement via the District Court of The Hague (exclusive jurisdiction, Article 1019d of the Dutch Code of Civil Procedure). In the US, the Defend Trade Secrets Act 2016. In the UK, the Trade Secrets (Enforcement, etc.) Regulations 2018.
For summary proceedings injunctions, Article 254 of the Dutch Code of Civil Procedure; for damage calculation Article 6:104 of the Dutch Civil Code.
Aspect
EU Trade Secrets
Standard NDA
Source
Directive 2016/943, Wbb
Contractual agreement
Effect
Independent of NDA
Contract between parties
Burden of proof
Reasonable measures + value
NDA + breach
Sanctions
Injunction + damage
Fine + damage contractual
Procedure
The Hague, Art. 1019d of the Dutch Code of Civil Procedure
According to choice of law of NDA
Aspect
EU Trade Secrets
Standard NDA
Source
Directive 2016/943, Wbb
Contractual agreement
Effect
Independent of NDA
Contract between parties
Burden of proof
Reasonable measures + value
NDA + breach
Sanctions
Injunction + damages
Fine + contractual damages
Procedure
The Hague, Art. 1019d of the Dutch Code of Civil Procedure
According to choice of law NDA
What risks do companies face? (What threatens in the event of a breach of confidentiality?)
Immediate damage due to the dissemination of information. Long-term loss of competitive advantage. Reputational damage towards customers and investors. For the victim enterprise: gathering evidence is difficult (information has already been disseminated). For the accused enterprise: broad injunction can block business operations. For former employees: liability personally and with the new employer. Damage amounts often high (average 1-5 million euros per case).
Practical example from our practice (How did we stop industrial espionage?)
Musch Legal represented a Dutch cleantech company following the dismissal of a senior R&D employee who moved to a competitor with 47 GB of technical documentation. Within 48 hours, we initiated: forensic investigation (chain of custody), summary proceedings at the District Court of The Hague under Article 1019d of the Dutch Code of Civil Procedure for the seizure of evidence from the former employee and the new employer, and an injunction against the use of trade secrets. Result within 3 weeks: all documents recovered, former employee declared non-compete for 18 months, new employer reached an 850,000 euro settlement. Speed and the specialized summary proceedings route were decisive.
What can you do? (Which trade secret strategy are you building?)
Explicitly classify trade secrets (confidential, highly confidential). Implement reasonable measures under Article 1 of the Trade Secrets Act: access control, NDAs, training, exit procedures. Document measures for evidence. In case of suspicion: forensic IT investigation prior to summary proceedings for evidence gathering. Summary proceedings before the District Court of The Hague under Article 1019d of the Dutch Code of Civil Procedure for injunction. For international infringement: parallel proceedings in multiple countries. Engage Musch Legal for trade secret strategy.
International intellectual property disputes