New Rules for Business Protection: Ministry of Economy Unveils Draft Law on Trade Secrets

The Ministry of Economy, Environment and Agriculture of Ukraine has published for public discussion a draft Law “On the Protection of Trade Secrets,” aimed at introducing comprehensive regulation in this area.

The initiative is part of Ukraine’s broader efforts to align its legislation with European Union standards, particularly Directive (EU) 2016/943. Protection of trade secrets is also a key element of Ukraine’s negotiations on EU accession within the “Internal Market” cluster.

What the draft law introduces
For the first time, Ukrainian legislation proposes a unified framework for protecting undisclosed know-how and business information from unlawful acquisition, use, or disclosure.

Under the draft law, information qualifies as a trade secret if it:

• is not generally known or easily accessible;
• has commercial value due to its secrecy;
• is subject to reasonable measures to maintain its confidentiality.

New court procedures
A major focus of the draft law is strengthening judicial protection mechanisms. It предусматривает:

• the possibility of closed court hearings;
• restricted access to documents containing confidential information;
• publication of non-confidential versions of court decisions;
• ongoing confidentiality obligations even after proceedings.

Courts will also be empowered to impose interim measures, including bans on the use of trade secrets, seizure of infringing goods, and other preventive actions.

Liability and compensation
If a violation is established, courts may order:

• cessation of use or disclosure of trade secrets;
• removal or destruction of infringing goods;
• compensation for damages;
• or a lump-sum payment ranging from 2 to 200 subsistence minimums.

The compensation mechanism is designed to be effective, proportionate, and dissuasive, ensuring both restoration of rights and prevention of abuse.

Why it matters
Currently, Ukraine lacks a dedicated law providing comprehensive protection of trade secrets. The proposed legislation aims to close this gap, strengthen safeguards against unfair competition, and fulfill international obligations in the field of intellectual property.

If adopted, the law is expected to significantly improve the legal environment for businesses and enhance Ukraine’s integration into the EU legal framework.