Protecting Trade Secrets in Rotterdam
In Rotterdam, with its bustling port and innovative businesses, trade secrets form a critical competitive advantage. This confidential information—such as logistics strategies or unique port processes—must be carefully safeguarded under employment law. Employees in the Rotterdam region often have access to sensitive data, and legislation ensures that unfair competition is prevented, with enforcement by local authorities like the **Rotterdam District Court**.
What Are Trade Secrets?
A **trade secret** consists of non-public information that provides economic value to a Rotterdam-based enterprise, provided reasonable steps have been taken to maintain its confidentiality. Examples include specialized formulas for maritime optimization or unpatented software for supply chain management. Unlike patents or copyrights, which are publicly disclosed, these secrets remain hidden through agreements and corporate protocols.
The Dutch definition aligns with the **EU Trade Secrets Directive (2016/943)**, implemented in 2018. In Rotterdam, these secrets differ from general knowledge—they must be unique and valuable. A widely known marketing approach for Rotterdam does not qualify, but an exclusive algorithm for freight pricing does.
Legal Framework
The core protection stems from the **Trade Secrets Act** of October 4, 2018, amending Book 6 of the Dutch Civil Code (DCC), particularly Article 6:162 DCC on unlawful acts. The unlawful acquisition, use, or disclosure of a trade secret is prohibited if it violates fair business practices.
Under Rotterdam’s employment law, this integrates with employment contracts and the **Works Council Act**. Article 7:611 DCC imposes a confidentiality obligation on employees regarding sensitive matters, even after termination. This supports targeted **confidentiality clauses**, as explained in our article on the **[Confidentiality Clause in Employment Contracts](link)**. The **Economic Offences Act (WED)** addresses espionage or theft. For Rotterdam-based companies with international ties, the EU Directive applies, enforced by the **Rotterdam District Court**. Violations may lead to civil claims, such as damages, or criminal proceedings under Article 231 of the Dutch Penal Code.
Protection Under Employment Law
Employees in Rotterdam firms—particularly in logistics or tech—often gain access to trade secrets through their roles. Employers must secure this through contracts, training, and IT measures, such as secure data storage. A **confidentiality clause** is a crucial tool, binding employees to silence regarding specific information.
This obligation persists after employment ends, unless explicitly waived. A **non-compete clause** may strengthen it but must be proportionate (Article 7:653 DCC). The **Rotterdam District Court** assesses whether the measure is justified for business interests. In case of breach, an employer may seek an injunction from the **subdistrict court**, combined with compensation for losses.
Employees deserve fair terms: overly broad restrictions are invalid. A vague ban on 'sharing all knowledge' is unenforceable; specificity is required.
Comparison with Other Intellectual Property Rights
| Right | Protection | Duration | Public Disclosure |
|---|---|---|---|
| Trade Secrets | Confidentiality via contracts | Indefinite, as long as secret | Non-public |
| Patent | Exclusive right to invention | 20 years | Publicly filed |
| Copyright | Creative works | 70 years post-author’s death | Not mandatory |
This comparison highlights the appeal of trade secrets for Rotterdam innovators: no need for public disclosure, but risk of exposure if leaked.
Practical Examples
Consider an IT specialist at a Rotterdam port company who learns about an advanced container management algorithm. Their contract includes a confidentiality clause. After leaving, they share it with a competitor, prompting the former employer to sue in the **Rotterdam District Court** for an injunction and damages (e.g., lost revenue). In a Rotterdam case (fictionalized based on ECLI:NL:RBROT:2020:5678), an ex-employee was ordered to pay €60,000 for disclosing supplier lists.
Or imagine a chef at a local restaurant: they know the unique recipe for a Rotterdam fusion dish. Upon leaving, they post it online, violating Article 7:611 DCC. The restaurant may seek an injunction via the **subdistrict court**. This often occurs in Rotterdam startups, where non-patentable innovations are secured purely as secrets. For advice, consult the **Rotterdam Legal Helpdesk**.
Rights and Obligations
Employers’ Rights:
- Enforce confidentiality through contracts.
- Initiate legal proceedings, including emergency injunctions at the **Rotterdam District Court**.
- Claim compensation for proven damages.
Employers’ Obligations:
- Explicitly define confidential data, e.g., via an NDA.
- Implement adequate protective measures.
- Avoid unfairly exploiting trade secrets against former employees.
Employees’ Rights:
- Fair employment terms without excessive restrictions.
- Access to legal advice via the **Rotterdam Legal Helpdesk** in disputes.
- Protection against abuse of confidentiality clauses by employers.
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