The Latest Developments regarding IP and Trade Secrets - Law and...
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TheLatestDevelopmentsregardingIPandTradeSecrets- LawandPractice
Contributors:BrigitteSpiegelerBoydRonaldPostemaOndine SinsheimerLingxi ZhongMariannaStepanianShu-ChienChen
Agenda
• WelcomeremarksandIntroduction• Introductiontointellectualpropertylaw
ü Trademarklaw,Patentlaw,copyrightlaw&designlaw
ü ZHEJIANGZHENGTECOversusBLOKKERB.V.andLeen BakkerB.V.Nederland
üIPQuiz• EUTradeSecretsDirective:AComparativeView
10/22/13 StartenalshandelsagentKvKDenHaag
Heffels Spiegeler Attorneys-at-law
Ourfocus• Netherlands,France,Germany,China,TaiwanOurareasofpractice• Intellectualpropertylaw• Internationaltradelaw• CorporatelawOurpeople• QualificationsfromNetherlands,France,Germany,China,Taiwan,NewYork
Whatcanwedoforclients?
• Legaladvice• Trademark&designprotection• Negotiations• Draftingagreements• Litigation,arbitration&mediation
WatisIntellectualProperty?• Collectivenameforrightonanintellectualcreationsuchasmusic,
trademarks,design,inventions,games,software,textsandphotographsetc.
• BestknownIP-Law:– Copyright– PatentLaw– Designrights– TrademarkLaw
IntellectualProperty
Copyright• Portraitrights• Otherrightsrelatedtocopyright:
• Chips- en topographyrights• Databaserights• Neighbouringrights
Industrialproperty
• Designrights• TrademarkLaw• PatentLaw• Breeder’sright
Acreation can be protected simultaneously byseveral rights
• Trademark:Speedo• Patent:“Sharkskin”• Design(dessin)
1.Copyright• GovernedbyAuteurswet/Copyrightlaw
• Automaticallyarisesatcreation– noregistrationcriteriaorcopyrightnoticeneeded
• Exclusiverightofthecreatoroftheworktopublishandreproducethis
• Period:until70yearsafterthedeathofthecreator
• Copyrightholder:author,publisher,employer,heir
Artikel 1Auteurswet regelt:Hetauteursrecht ishetuitsluitend recht vandenmakervaneen werk vanletterkunde,wetenschap ofkunst,ofvandiens rechtverkrijgenden,om ditopenbaar te maken ente verveelvoudigen,behoudens debeperkingen,bij dewetgesteld.
Copyright- Limitationofthelaw• Creation=‚Work‘inthelaw(art.10Auteurswet)• Conditionforprotection:Originality:
– Ownoriginalcharacter– Personalmarkofthecreator– Sensoryobversable
(Endstra/NieuwAmsterdam,HR30.05.2008,NJ2008,556)
(+)Photos,drawings,computersoftware,texts,audio- envideomaterialetc.(-)thoughts,reproductions,businessmessages,laws,factsetc.
Whatisapatent?• Patentsgiveyouatemporaryexclusiverightonaninvention• Withapatentyoucanprotectyourselfagainstfree-ridingbyothers,whowould
benefitfromthesuccessofyourinvention
• Statutoryprovisions:– Rijksoctrooiwet 1995(ROW)– Europees Octrooiverdrag (EOV)
• Conditionsforapatentissueofatechnicalinvention(art.2ROW,art.52EOV):• novelty,• inventiviness en• Industrialapplicability
Validformaximum20yearsfromthemomentofsubmission.
2.Patents
3. TrademarkLaw
What isatrademark?Amarkthat differentiates your products orservicesfrom yourcompetitors (art.2.1Benelux-verdraginzakedeintellectueleeigendom,BVIE)
Wordmark:CHANEL Shape trademark:
Logo: Colourmark:
Combinationword mark Soundmark:and logo:
Whatisn’tatrademark?
Examiningonabsolutegrounds:• Theabsenceofadistinctivecharacter
• Notdescriptive
• Notmisleading
• Notcontrarytopublicorderandcommonmorals
Trademarkregistration
Youcanchooseyourselfinwhichcountriesyouwantthetrademarktobeprotected.
TrademarkregistrationintheBenelux:• Statutoryprovision:BeneluxVerdrag inzake deIntellectuele
Eigendom (BVIE)
• RegistrationattheBeneluxOfficeforIntellectualProperty(BOIP),theHague
• Registrationis validfor10years(extendable),Art.2.9BVIE
• Costs: trademarkregistrationinthreeclasses=€ 240
TrademarkregistrationoutsidetheBeneluxEurope:• Onesingleprotectioninall28memberstatesoftheEuropean
Union• EuropeanUnionIntellectualPropertyOffce (EUIPO)
International:• Internationalregistrationbasedonapreviousstarting
registration• Trademarkprotectionincountrieswhicharememberofthe
MadridProtocol(morethan90countries)• WorldIntellectualPropertyOrganisation(WIPO),Geneva
(www.wipo.org)
4.DesignrightsWhatisadesign?Theappearanceofaproductorapartthereof.
• Drawing:two-dimensionalproduct(e.g.apatern ordesignonwallpaper,textileetc.)
• Design:three-dimensionalproduct(e.g.designof(mobile)telephones,furniture,toysetc.)
• Conditionsforprotection:– New(about12months)– Individualcharacter
• Differencepatentanddesign:• Patentprotectsaninventionofatechnicalproductorprocess• Designonlyappliestotheappearanceofaproductandcan’tprotectthefunctionofaproduct
• Designislessexpensive
Designrights- the statutory provisions
• DesignrightinBenelux:• BeneluxConvention onIntellectual Property(BVIE)
• DesignrightEurope:• Regulation onCommunityDesign
• Designharmonisation Directive
Design– registrationpossibilities• Beneluxdesign:BeneluxOfficeforIntellectualProperty(BOIP),the
Hague
• RegisteredCommunitydesign:EuropeanUnionIntellectualPropertyOffice,EUIPO
• Non-registeredCommunitydesign:noregistration
• Internationalmodel:WorldIntellectualPropertyOrganization,WIPO(Geneva)
CostsBOIP:singleonlinedepotfor5years:€108(plus€10perattachedimage)
DurationprocedureBOIP:definitiveregistrationtakesabout4months
Design– registrationperiods
• Beneluxdesign:– 5years
• Extension:• Periodmaybeextendedforfourconsecutivetimesforamaximumof25years
• RegisteredCommunitydesign:identicalperiodsastheBeneluxdesign
• International:registrationperiodof5years,afterextendableeveryfiveyears,untilthemaximumofthecountryconcerned.
• Non-RegisteredCommunitydesign:3yearsprotectionfromthefirstdaywhenit’spubliclyavailableintheEU
Procedure&facts• Zhengte,aChineseproducerofhighqualitygardenproducts– Sellspartytent“Zhengte model”inEurope
• Blokker andLeen Bakker,Dutchretailcompany– Sellspartytent“LeSud partytent”inBenelux
vs.
• InfringementbyBlokker andLeen Bakker?• Preliminaryinjunction,urgentinterest
ArgumentsbytheCourt
• LegitimateandvaliddesignbyZhengte,butwhy?– Anewdesign– Individualcharacter
• InfringementbyBlokker andLeen Bakker– Nodifferentoverallimpression
§ Partytentshavethesameelements
ConclusionoftheCourt
• The“LeSud Partytent”does notproduceadifferentoverallimpression
• Theinjunctionsought byZhengte toretrieveall“LeSud Partytents”hasbeengranted.
• TheinjunctionallocatedtoallcountriesoftheEuropeanUnion.Strongright!
Directiveinshort• Date:willbeimplementedinallMemberStatesbeforeMay2018
May2016 May2018 EUCouncil Today- TIMETOACT
AllMemberStates adoptsthe
needtobecompliant directive
• EuropeanDirectiveontheprotectionofundisclosedknow-howand
businessinformationagainsttheirunlawfulacquisition,useanddisclosure
• Aim:harmonizetradesecretdefinitionandprotectionaroundtheEU – Avoidafragmentationofthesinglemarketandtheweakeningofthedeterrenteffetofthe
rules
DTSAinshort
• SignedbyPresidentObamaon May11th
2016,tookeffectimmediately
• Providesfederalprivaterightofactionfortradesecretprotection
Similar AimsandScopes
• Desiretounify,orfederalize,tradesecretprotection
• Strengthenthedeterrenteffectoftherelevantrules
• 3 maincriteria: – Secret/commercialvalueinbeingsecret/stepstakentokeepitsecret
Whatisatradesecret? (Dir.article2)
• itisnot generallyknown amongorreadilyaccessibletopersonswithinthecirclesthatnormallydealwiththekindofinformationinquestion;
• ithascommercialvaluebecauseitissecret; • ithasbeensubjecttoreasonablesteps underthecircumstances,bythepersonlawfullyincontroloftheinformation,tokeepitsecret.
Whyyoushouldbeinterested
• Directivetakesintoaccountcompanies’realneedsandlistenedtothebusinesses
• HarmonizedTradeSecretrulesmeans • LessbusinessriskinEUcountries • Strongerprotectionofyourtradesecrets • Easiercross-borderbusinesswithintheEU • Easiertosharetradesecretsandtoseekremedyin
caseofmisappropriation
LawfulconductsDTSA Directive
• Reverseengineering
• Independent derivation
• Anylawfulmeans ofacquisiton
• Reverseengineering • Independentderivation • Anyhonestcommercialpractices
• Exerciseoftherightofworkersor
workers’representativestoinformationandconsultationprovidedthatsuchdisclosurewasnecessaryforthatexercise
• ExerciseoftherighttofreedomofexpressionandinformationassetoutintheCharterofEUFundamentalRights
Whencanyouact?
• Againsttheunlawfulacquirerofatradesecret– “Unauthorizedaccess”– “Anyotherconductcontrarytohonestcommercialpractices”
• Againstapersonwhokneworought,underthecircumstances,tohaveknownthatthetradesecrethadbeenobtaineddirectlyorindirectlyfromanotherpersonwhowasusingordisclosingthetradesecretunlawfully
Standing
• DTSA:TradeSecret’sowner • Directive:owneroranypersonwholawfullycontrolsthetradesecret
• Broaderstandingforthedirective
Remedies• Injunctions• Damages – Lostprofits/ Accountofprofits – Orlumpsumforareasonableroyaltyforthetradesecretuse
• ControversywiththeexparteseizureoftheDTSA • Directiveallowsforseizure,butsilentastowhethercanbeexparte
• DTSAallowsforincreaseddamagesformaliciousactivitiesand
potentialcriminalliability– nottheDirective– Noenhancedpenaltyformaliciousactivity,andnocriminalpenalties
Particularities• Confidentialitycanbekeptduringalegalproceeding
– Notdefault,needscourtapprovalintheEU
• Protectionofwhistleblowers,whocanpublishtradesecretstoservepublicinterest – MuchbroaderinDirectivethaninDTSA,whichprotectsonlywhistleblowingtothegovernment,orinacourtfiling
– DTSArequiresemployerstoletemployeeknowifthispossibilityandprotection,whichisnotthecaseoftheDirective
Employeemobilityandnon-competeagreements
• Bothregimesareprotectiveofemployeesrights,
– Directivelessexplicitbutthesubjectcannotbeignored
• DTSA: – Injunctionsagainstformeremployeemustbebasedon
evidenceofthreatenedmisappropriationandnotsimplyonthefactthatthepersonmayknowcertaininformation
– Noncompeteagreementscannotconflictwithapplicablestatelaws
Actionsandpracticaltips
• Identifyyourtradesecretsandwheretheyarecreated
• AssessyourEUwideapproach
• ReviewyourITsystems
Actionsandpracticaltips(ct’d)
• Ensureprecautionarymeasuresareinplacetominimizeliabilitywhenhiringemployeesfromcompetitors
• Identifyyourinternal protectivemechanism,including:– Trainingprocedures – Employment contracts - mobilityandnoncompeteagreements
– Use ofNDAs
Actionsandpracticaltips(ct’d)
• Monitorbestpracticeintermsofdemonstrativesteps(compliance)
• Monitorpoliciesimplementedonanationallevelandtakeappropriateactiontoadjust.
• WorkwithConfidentialityAgreementswhendealingwiththirdparties.
Heffels Spiegeler Advocaten /Attorneys-at-LawTel: +31(0)70- 2170200 E-mail:[email protected]