Glossary

Trade Secrets Act (GeschGehG)

What is the Trade Secrets Act (GeschGehG)?

The Trade Secrets Act (GeschGehG) is a German law that has been in force since 2019 and regulates the protection of trade secrets. It implements the European Directive on the protection of confidential know-how and proprietary business information. The aim is to effectively protect trade secrets from unauthorized use, disclosure or theft.

What is a trade secret according to the GeschGehG?

According to § 2 No. 1 GeschGehG, a trade secret is information that:

  • is not generally known or accessible,
  • is of economic value because it is secret,
  • is subject to appropriate confidentiality measures,
  • and where there is a legitimate interest in confidentiality.

Examples: Customer lists, recipes, source codes, manufacturing processes, strategies.

 

Who is affected by the Trade Secrets Act (GeschGehG)?

The GeschGehG affects all companies and self-employed persons who possess trade secrets, such as technical processes, customer data, recipes, market strategies or other confidential information. They must take verifiable, appropriate protective measures to ensure that their information actually falls under the protection of the law. Only if these protective measures are documented and implemented can companies invoke the law in the event of a dispute and enforce their rights.

In addition, the law also makes exceptions in favor of employee rights or investigative journalism in order to ensure a fair balance of interests.

 

What protective measures are required under GeschGehG?

The company must take “appropriate confidentiality measures”, e.g:

  • Non-disclosure agreements (NDAs)
  • Access restrictions (IT systems, access control)
  • Employee training on handling sensitive data
  • Classification of information
  • Technical safety measures

Without such measures, there is no legal protection under the GeschGehG.

What are the consequences of violating the Trade Secrets Act?

In the event of unlawful disclosure or use (Sections 4-13 GeschGehG), affected companies may:

  • Assert claims for injunctive relief,
  • Claim damages,
  • demand the surrender of unlawfully obtained information,
  • enforce the destruction or recall of materials.

Courts can also order confidentiality during the proceedings (Section 16 GeschGehG).