Sweden: Act on Trade Secrets (2018:558)

July 1, 2018

Sweden: The Act on Trade Secrets (2018:558) entered into force on July 1, 2018, and repealed the Act on the Protection of Trade Secrets (1990:409).

It implements provisions of the Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure ("the Directive").

This Act provides the following, inter alia: (i) a new notion of "trade secret"; (ii) extension of the scope of prohibited acts subject to the "infringement of trade secrets"; (iii) inclusion of negligence as constitutive element of unlawful acquisition, use or disclosure of trade secrets; (iv) imposing measures and remedies such as injunctions, compensation for damages and penalties; (v) strengthening protection of secrecy for trade secrets during court proceedings; and (vi) increase of the penalty for economic espionage (from a fine to six months imprisonment).