Introduction to Trade Secrets law in Israel

Chapter 2 of the Commercial torts Law -1999 deals with protect against misappropriation of trade secrets . Trades secrets are considered as non-registered intellectual property. In other words, it is not possible or worthwhile for the owner of a trade secret to register it. This kind of protection is an alternative to patent protection. The most famous example is that of the Coca-Cola company because the formula of the beverage is a trade secret. The main advantage of the trade secrets protection is that this protection is not limited in time and it’s not necessary to invest significant financial resources, in contrast to patents.

The main difference between the laws of trade secrets and the laws of copyrights and the laws of patents is that copying by reverse engineering constitutes a prohibited act according to the latter, but according to the law of trade secrets it is usually permitted and is defined in section 6 (c) as an exception to the misappropriation of a trade secret. In addition, there’s a similarity between the right for Commercial confidentiality and the right for reputation. In both of the cases, the rights are still developing when it comes to judgment. Both of the rights are non- registered. Unlike patent protection, which is very rigid in the period and scope of protection, the protection of a trade secret is relative to the market value of the secret. The main difference between patents and trade secrets is that patents considered to be defendable without dependency on it’s market value. On the other hand, trade secret considered defendable only in case it has a high market value.

Have a question about the article?

You might also be interested in

Software copyright in Israel

The tree of intellectual property laws has many branches. Each branch has its own fruit with a unique set of rules regarding its suitability, freshness


Software patents in Israel

The right to a patent is a territorial right subject to the legislative arrangements of each and every country, where each and every country has