Law Of The Kyrgyz Republic On Trade Secret


March 30, 1998, N 27


On Trade Secret

(In redaction of Laws of the KR

June 26, 1998, N 83, July 31, 2007, N 125,

June 26, 2009, N 192) 

Chapter I. General Provisions

Chapter II. Subjects and objects of trade secret

Chapter III. Protection of trade secret and access to it. 

The present Law determines legal bases for trade secret protection on territory of the Kyrgyz Republic.

The objective of the present Law is protection of trade secret and prevention of unfair competitiveness at realization of commercial activity. 

Chapter I

General Provisions

Article 1. Notion of trade secret. 

1. A trade secret refers to non-state secret information related to the production, technology, management, financial and other activities of an economic entity whose disclosure could be prejudicial to his interests. 
2. Information related to trade secrets, is the property of a business entity or is in his possession, use, disposal within the limits established by it in accordance with the law.

Article 2. Requirements to information constituting a trade secret. 
Information forming trade secrets, must meet the following requirements: 
a) to have an actual or potential value for the business entity; 
b) not to be generally known or available to the public under the law; 
c) to be identified in duly order with adoption of appropriate measures by business entities to preserve their privacy through a classification system for the aforementioned information, the development of internal rules limiting use, the introduction of appropriate labeling of documents and other information carriers, accounting, storage and use.

Article 3. Unauthorized disclosure of trade secrets. 
Under the unauthorized disclosure of trade secrets understood deliberate actions of employees of an economic entity possessing information constituting a trade secret, or other natural or legal persons who have access to trade secrets or illegally obtained information, trade secrets, entailing their premature opening and uncontrolled use or distribution, resulting in applied or may be applied to the detriment of the economic entity.

(In redaction of the Law of the KR of June 26, 1998, N 83) 

Chapter II

Subjects and objects of trade secret

Article 4. Subjects of trade secrets 
1. Subjects of trade secrets include physical and legal entities of the Kyrgyz Republic, as well as other states engaged in entrepreneurial activities in the Kyrgyz Republic. 
2. State guarantees the right of the subject of trade secrets in its observance and protection as provided by the Law.

Article 5. Objects of trade secrets 
1. The objects of trade secrets are deliberately concealed economic interests and information about various aspects and fields of production and economic, administrative, scientific, technical, financial, business entity, the protection of which is due to the interests of competition and the possible threat to the economic security of the business entity. 
2. Contents and scope of information constituting a trade secret, shall be determined by business entities. 
3. Objects of commercial confidentiality may not apply:

a) the constituent documents, and documents that give the right to engage in entrepreneurial activities and private economic activities which may be subject of licensing (charter, decision to establish an enterprise or agreement or founders, registration certificates, licenses, patents); 
b) information on the approved forms of statistical reporting, and reporting on financial and economic activities, and other information necessary to verify the correctness of calculation and payment of taxes and other obligatory payments; 
c) documents on payment of taxes and other obligatory payments; 
d) documents certifying the solvency;

e) information on number, composition of employees, wages of a head of organization and members of the collegial executive body of the organization, the wage system, the working conditions, including labor protection, indicators of occupational accidents and occupational diseases and the availability of jobs; 
g) information on environmental pollution, antitrust violations, non-compliance with labor protection rules, sales of products harmful to the health of consumers, as well as other violations of the law and the amount of damage with damage; 
h) information about the participation of officials of state enterprises in organizations engaged in entrepreneurial activity.

 (In redaction of the Law of the KR of July 31, 2007, N 125) 

Article 6. Competence and liability of trade secrets 
1. Procedure for protection of trade secrets in accordance with this Act is determined by a business entity or a designated supervisor who shall communicate it to employees who have access to information constituting a trade secret. 
2. Violation workers business entity, other individuals and legal entities established by a business entity or a designated supervisor of trade secret protection order shall be liable under the law. 
3. A business entity shall be personally responsible for creating the conditions necessary to ensure the preservation of trade secrets. 
4. State promotes the subject of entrepreneurship in creating the necessary conditions to ensure the preservation of trade secrets.

Chapter III

Protection of trade secret and access to it

Article 7. Mechanism determining the order of protection of trade secrets 
Subjects of trade secrets develop instructions, regulations to ensure the safety of trade secrets, which are determined by: 
a) the composition and volume of information constituting a trade secret; 
b) the procedure for assigning the neck "Enterprise’s Secret" to information, works, items and its removal; 
c) the procedure for admission to employees of the economic entity, as well as those involved in its activity, the information constituting a trade secret; 
g) usage, accounting, storage and labeling of documents and other media, products, information about which constitutes a trade secret; 
d) Organization of supervision over the use of information constituting a trade secret; 
e) Procedure for making the mutual obligations of economic entities of commercial confidentiality when contracting parties undertake any joint action; 
g) the procedure stipulated by the legislation applying disciplinary measures, tangible impact on workers, divulged trade secrets; 
h) the responsibility for the preservation of trade secrets on official business entity.

Article 8. Liabilities of employees of an economic entity to preserve trade secrets.  
1. Workers of economic entity with access to information constituting a trade secret must: 
a) keep trade secret, which will be known to them at work and not disclose it without a permission issued in accordance with established procedure, provided that the information constitutes a trade secret, was not known to them previously or they did not receive from a third party without obligation of its confidentiality; 
b) observe instructions, regulations, orders to ensure the preservation of trade secrets; 
c) in the case of unauthorized attempts to get information from them about trade secrets, immediately notify the appropriate official or the appropriate division of business entity; 
g)  keep trade secrets of economic entities of business relations; 
d) not to use the knowledge of trade secrets for employment activities that as competitive actions may harm a business entity; 
e) in the event of dismissal to pass any media, trade secrets (manuscripts, drafts, documents, drawings, magnetic tapes, punched cards, punched tapes, disks, diskettes, printing on printers, film, films, models, other materials) which were at their disposal, the appropriate official or the appropriate division of such business entity. 
2. These commitments are given in written form at conclusion of an employment contract or any other contract or during its execution.

Article 9. Specialized units for trade secrets protection. 
1. To protect trade secrets, business entities may establish special regime units, with functions and powers, which are reflected in the corresponding instructions, regulations and orders. 
2. Law enforcement and other government bodies provide assistance to regime divisions of economic entities to carry out their functions.

Article 10. Protection of trade secrets at interaction of economic agents. 
1. When economic entities carry out ttrade-economic, scientific-technical, monetary and other business relations, including with foreign partners, the contracting parties specifically stipulate the nature of the content of information constituting a trade secret and mutual commitments to ensure the safety in accordance with the Law. 
2. At the conclusion of agreements with foreign partners, conditions of confidentiality must comply with the legislation of the country where the contract is concluded, unless otherwise is not provided by international agreements.

Article 11. Access to trade secret. 
1. Employees, defined by business entity have access to trade secret. 
2. State supervisory and law enforcement agencies in accordance with the authority given them by the legislation on control and supervision, have the right, within its competence on the basis of a written request to get acquainted with the information of a trade secret. 
Access to trade secrets shall be provided to the authorized body at condition of combating against terrorism financing and legalization (laundering) of income from criminal ways in accordance with the Law of the Kyrgyz Republic "On prevention of terrorism financing and legalization (laundering) of income from criminal way." 
3. Seizure of documents that contain information that is a trade secret, shall be made only with the approval of the prosecutor or his deputy, and in the manner agreed with the head of the institution. Seizure shall be made by a reasoned decision of investigator. 
4. Officials of these agencies are responsible under the legislation for disclosure of information constituting a trade secret of a business entity.

(In redaction of the Law of the KR of June 26, 2009, N 192) 

Article 12. Responsibilities of juridical and natural persons having access to trade secrets. 
1. Juridical and natural persons, including public officials from control and supervision bodies, as well as the authorized body for combating against terrorism financing and legalization (laundering) of income received from criminal ways, having access to trade secrets, must strictly comply with its non-disclosure obligations, to prevent information leakage to competing economic entities. 
2. Transfer of information constituting a trade secret to other persons may be carried out by the decision or with the consent of the head of an economic entity gratis or for a fee. The person to whom such information was transferred, can use it without the right to disclose it to third parties, unless the agreement provides otherwise.

(In redaction of the Law of the KR of June 26, 2009, N 192) 

Article 13. Limits of acquaintance with trade secrets in court, arbitration. 
1. During the trial court considering various disputes, acquaintance of court, arbitration and third parties with the objects of trade secrets may be possible in part related directly to the merits of the dispute, in which an entity acts as a plaintiff or defendant. 
2. Unlimited admission to the court and arbitration books and other commercial documents is permitted in the following cases: 
a) bankruptcy proceedings and liquidation of a business entity; 
b) disputes over inheritance rights or division of marital property; 
c) disputes between the founders of a business entity.

Article 14. Basis for determining of non-disclosure of a trade secret. 
Transfer to third parties of information constituting a trade secret, shall entail legislation disciplinary, administrative and criminal liability, provided that the information contained in the mystery of the economic entity, that they were entrusted with the established procedure to divulge them without the consent to the disclosure of information obtained or otherwise unlawful manner and that the disclosure of the damage occurred.

(In redaction of the Law of the KR of June 26, 1998 N 83)

Article 15. Liability for unauthorized disclosure of trade secrets. 
1. Violation of this Law and other regulations on trade secrecy by natural and legal persons shall be held liable in accordance with the Law. 
2. Workers of economic entity, government agencies, and persons who illegally obtain information on trade secrets, or taken possession of them, are also obliged to compensate the damage caused to the economic or business entities.

Article 16. Effectiveness of this Law. 
This Law enters into force on the date of publication.  

Published in the newspaper "Erkin Too - Free Mountains", April 10, 1998, N 43-44

President of Kyrgyzstan Askar Akaev

Adopted by the Legislative Assembly 
Jogorku Kenesh of the Kyrgyz Republic on March 2, 1998