Trade Secrets Law in Mongolia
Here’s an overview of Trade Secrets Law in Mongolia:
1. Legal Framework
Mongolia’s protection of trade secrets is primarily governed by several laws and regulations:
Law on Trade Secrets (2000): This is the key legislation specifically addressing trade secrets in Mongolia.
Civil Code of Mongolia
Law on Intellectual Property (relevant provisions)
Law on Commercial Secrets and Confidentiality
Criminal Code (for penalizing theft or misuse of trade secrets)
2. Definition of Trade Secrets
Under the Law on Trade Secrets, a trade secret in Mongolia is defined as:
Information related to industrial, commercial, scientific, technical, or economic activity
That is kept confidential
Has actual or potential commercial value
And is not publicly known or easily accessible by persons who normally deal with such information.
The law also stipulates that the rightful owner must take reasonable measures to keep the information secret.
3. Scope of Protection
Trade secrets may include:
Technical data, formulas, designs, software, methods, manufacturing processes
Business information such as customer lists, pricing, marketing strategies
Any other confidential information of commercial value
4. Rights and Obligations
Owners of trade secrets have the right to:
Use the trade secrets exclusively
Prevent unauthorized use or disclosure by third parties
Employees and business partners must maintain confidentiality if bound by contract or law.
The law requires companies to take reasonable measures to protect their trade secrets, such as confidentiality agreements.
5. Legal Remedies
If trade secrets are unlawfully acquired, disclosed, or used, the owner may seek:
Civil remedies: compensation for damages, injunctions to stop misuse, destruction of unlawfully used materials
Administrative sanctions: fines or penalties imposed by authorities
Criminal liability: theft or intentional disclosure of trade secrets can lead to criminal prosecution under the Criminal Code, including fines or imprisonment
6. Enforcement
Enforcement involves courts and administrative agencies.
Trade secret owners need to provide evidence that the information qualifies as a trade secret, that it was protected, and that there was unauthorized use or disclosure.
7. International Compliance
Mongolia is a member of international organizations such as:
WIPO (World Intellectual Property Organization)
WTO (World Trade Organization) and complies with TRIPS provisions on trade secret protection.
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