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

ProcedureattheBOIP

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

ThePartytent infringementCase

Zhejiang Zhengte co. v. Blokker B.V.andLeen BakkerB.V.Nederland

CourtofTheHague02-11-2016

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!

QUIZ

Violation ofintellectuel Property?

What doyou think?

Artworkinspiredbythepicturehereabove

Guccivs.Guess

Guess Gucci

PUMAvs.Sabèl

Protectingyourknow-howandbusinessinformation

TradeSecretDirective2016/943

ComparedtotheAmericanDTSA

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.

Anyquestions?

Thankyouforyourattention!

Heffels Spiegeler Advocaten /Attorneys-at-LawTel: +31(0)70- 2170200 E-mail:mail@heffels-spiegeler.com