Unlike patents, trademarks, and copyrights, trade secrets are not protected by registration; there is no trade secret registry, and indeed registering would destroy the very secrecy that gives the asset its value. A trade secret is generally understood as information, including a formula, pattern, compilation, program, device, method, technique, or process, that derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by others who can obtain economic value from its disclosure or use, and that is the subject of reasonable efforts under the circumstances to maintain its secrecy. Classic examples include customer lists, pricing formulas, manufacturing processes, recipes, and business strategies. Protection depends entirely on maintaining secrecy and on legal instruments. The practical measures are: non-disclosure agreements (NDAs) with employees, contractors, suppliers, and prospective partners; confidentiality clauses in employment contracts, coupled with reasonable post-employment obligations (noting that a non-compete must be reasonable in time, place, and scope to be enforceable, while a confidentiality obligation is more readily enforced); internal controls such as restricting access on a need-to-know basis, marking documents confidential, securing systems, and exit procedures reminding departing employees of their obligations. The remedies against misappropriation include: a civil action for breach of contract where an NDA or confidentiality clause was violated; an action for damages based on unfair competition and on the Civil Code provisions on human relations and abuse of rights; injunctive relief to restrain the use or further disclosure of the secret; and criminal liability in appropriate cases, such as under the Revised Penal Code provisions on the revelation of secrets and, where computer systems are involved, under the Cybercrime Prevention Act and the Data Privacy Act. So trade secrets are protected by keeping them secret and by contracts and internal controls, with remedies in contract, unfair competition, injunction, and, in proper cases, criminal law.
No Registration, Only Secrecy
Unlike patents and trademarks, trade secrets are not registered — registering would destroy the secrecy that gives them value.
What Qualifies
Information (a formula, method, process, compilation, or program) that derives economic value from not being generally known or readily ascertainable, and that is the subject of reasonable efforts to maintain secrecy. Examples: customer lists, pricing formulas, recipes, processes.
How to Protect
- NDAs with employees, contractors, suppliers, and partners;
- Confidentiality clauses in employment contracts (more readily enforced than non-competes, which must be reasonable); and
- Internal controls — need-to-know access, marking documents, system security, exit procedures.
Remedies
A civil action for breach of contract; damages for unfair competition and under the Civil Code on abuse of rights; an injunction against use or further disclosure; and, in proper cases, criminal liability (revelation of secrets, or under the Cybercrime and Data Privacy laws).
Practical Takeaways
- Trade secrets are protected by secrecy + contracts, not registration;
- Use NDAs, confidentiality clauses, and access controls;
- Remedies: contract, unfair competition, injunction, sometimes criminal.
Frequently Asked Questions
Are trade secrets registered in the Philippines? No. There is no trade secret registry. Protection depends on maintaining secrecy and on legal instruments such as NDAs and confidentiality clauses, since registration would destroy the secrecy itself.
What qualifies as a trade secret? Information such as a formula, method, process, or compilation that derives economic value from not being generally known or readily ascertainable by proper means, and that is the subject of reasonable efforts to maintain its secrecy.
How do I protect my trade secrets? Through non-disclosure agreements, confidentiality clauses in employment contracts, and internal controls such as need-to-know access, marking documents confidential, securing systems, and exit procedures for departing employees.
What are the remedies if a trade secret is stolen? A civil action for breach of contract, damages for unfair competition and abuse of rights, injunctive relief against use or disclosure, and in appropriate cases criminal liability, including under the Cybercrime Prevention Act and the Data Privacy Act.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.