Trade Secret Theft And Employee Mobility Under Polish Corporate Law.
1. Legal Framework Governing Trade Secrets in Poland
(A) Core Statute
The main law is the Act on Combating Unfair Competition (1993), especially Article 11.
- Trade secret = information that:
- is not publicly known,
- has economic value,
- and is subject to reasonable confidentiality measures.
- Misappropriation includes:
- unlawful acquisition,
- disclosure,
- or use of such information.
(B) Post-2018 Reform (EU Directive 2016/943)
- Poland implemented the EU directive in 2018.
- It expanded protection, but also created ambiguity regarding employees’ post-employment duties.
(C) Labour Law Overlay
- Employees owe:
- duty of loyalty,
- confidentiality obligations,
- and sometimes non-compete clauses.
2. Core Legal Problem: Trade Secrets vs Employee Mobility
Polish courts repeatedly emphasize:
Not everything an employee knows is a trade secret.
Key distinction:
| Protected | Not Protected |
|---|---|
| Confidential business info (e.g., formulas, strategies) | General skills, experience, know-how |
| Customer lists (if confidential) | Professional competence |
| Technical processes | Industry knowledge |
This distinction is central in case law.
3. Important Case Laws (Detailed Explanation)
Case 1: Polish Supreme Court – 29 January 2021 (V CSKP 7/21)
Facts:
- Former employee used knowledge gained during employment in a new job.
- Employer alleged trade secret infringement.
Issue:
Is employee-acquired knowledge always a trade secret?
Judgment:
The Supreme Court ruled:
- Employee knowledge, experience, and skills are NOT trade secrets
- Trade secret law must not restrict employee mobility
Key Principle:
Trade secret protection cannot function as a “hidden non-compete clause.”
Importance:
- Landmark case reinforcing labour mobility
- Prevents employers from over-claiming confidentiality
Case 2: Polish Supreme Court – Customer Lists & Market Knowledge
Facts:
- Employee moved to a competitor and contacted former clients.
- Employer claimed misuse of confidential customer database.
Issue:
Are customer lists always trade secrets?
Judgment:
Court held:
- Customer data can be a trade secret only if:
- not publicly available,
- and actively protected.
- If customers are easily identifiable in the market → not protected
Principle:
Accessibility of information determines secrecy.
Importance:
- Clarifies boundary between market knowledge vs protected data
Case 3: Polish Supreme Court – “General Knowledge vs Confidential Information”
Facts:
- Employee used technical know-how learned during employment.
Issue:
Is technical know-how always protected?
Judgment:
- Court distinguished:
- general technical skills → free to use
- specific confidential processes → protected
Principle:
Only specific, identifiable confidential information qualifies as a trade secret.
Importance:
- Prevents overreach in industries like IT, engineering, consulting
Case 4: Polish Court of Appeal – Non-Compete vs Trade Secret Misuse
Facts:
- Employer tried to claim trade secret violation instead of enforcing a non-compete clause.
Issue:
Can trade secret law substitute for a non-compete agreement?
Judgment:
- Court rejected employer’s claim.
- Held that:
- Without a valid non-compete agreement,
- employee is free to work for competitors.
Principle:
Trade secret law cannot replace contractual restrictions.
Importance:
- Forces employers to use proper contractual mechanisms
Case 5: Polish Supreme Court – Burden of Proof in Trade Secret Cases
Facts:
- Employer alleged former employee disclosed confidential data.
- Evidence was indirect.
Issue:
Who must prove existence of a trade secret?
Judgment:
- Employer must prove:
- existence of a trade secret,
- confidentiality measures,
- unlawful use/disclosure.
Principle:
Trade secret claims require strict evidentiary standards.
Importance:
- Protects employees from speculative claims
Case 6: Polish Supreme Court – Post-Employment Confidentiality
Background Issue:
After the 2018 amendment, explicit 3-year protection for employee confidentiality was removed.
Legal Question:
Do employees remain bound after termination?
Judicial Interpretation:
- Courts suggest:
- obligation continues only if:
- contractual clause exists, OR
- clear legal basis can be established.
- obligation continues only if:
Importance:
- Creates uncertainty
- Encourages employers to draft explicit confidentiality clauses
4. Key Doctrinal Themes Emerging from Case Law
(1) Strong Protection of Employee Mobility
- Courts consistently prioritize:
- labour freedom,
- economic mobility,
- competition in labour markets.
(2) Narrow Interpretation of Trade Secrets
- Only clearly defined, protected, valuable information qualifies.
(3) Rejection of Overbroad Employer Claims
- Courts resist:
- vague definitions,
- attempts to monopolize employee knowledge.
(4) Importance of Contracts
Employers must rely on:
- NDAs (confidentiality agreements)
- Non-compete clauses (with compensation)
Otherwise:
- legal protection weakens significantly.
5. Remedies for Trade Secret Theft
If infringement is proven, courts may order:
- cessation of unlawful activity
- damages compensation
- surrender of profits
- publication of judgment
- even criminal penalties (in serious cases)
6. Critical Evaluation
Strengths of Polish Approach:
- Balances innovation with labour mobility
- Prevents abuse of trade secret law
- Aligns with EU directive principles
Weaknesses:
- Post-2018 ambiguity on employee obligations
- Heavy burden of proof on employers
- Risk of under-protection without contracts
7. Conclusion
Polish corporate law adopts a balanced but employee-friendly approach:
- Trade secrets are strongly protected—but only when clearly defined and safeguarded.
- Courts consistently refuse to let trade secret law:
- replace non-compete agreements,
- or restrict employee career movement.
The case law shows a clear pattern:
Employee mobility is the rule; trade secret protection is the exception—applied strictly.

comments