CHAPTER 3 PROTECTION OF COMMERCIAL INFORMATION English word “Information” derived it meanings from Latin word “Informacio”. Commercial information – includes all the situations engaged with informarion of various goods and services on the market. These include quantitative and qualitative indicators of commercial activity of the company (a commercial structure, commercial enterprise, etc.), A variety of information and data about the commercial activity (prices, suppliers, competitors, supply conditions, calculations, consumer goods, etc.). “Commercial secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Four Basic Elements Each of four elements must be present in a “commercial secret”: 1)A “commercial secret” must consist of information. The types of information that have been protected by commercial secret law are virtually without limit. The most common examples fall under two categories: technical information and business information. In the next section, you will see some examples. 2)The information must derive economic value (actual or potential) from the fact that it is secret. In other words it must have some value flowing from the fact that it is not known, and therefore cannot be put to use, by others. This value is independent of any intrinsic value that the information might have. To look at this element in still another way, information has the requisite independent economic value if a potential competitor or other interested person would have to expend time and money to find or develop it.

3.The information cannot be generally known (either by the public, or, more importantly, by other persons in the industry). To be a commercial secret, the information must not be generally known to the public, industry competitors, or others who could realize economic value from its disclosure or use. Knowledge of the information in question by even a very small number of outsiders (say, one key person) can deny or destroy commercial secret status. 4.The information must be treated as a secret, and be the subject of reasonable efforts to maintain its secrecy. For information to acquire and maintain commercial secret status, its owner must exercise reasonable efforts to maintain its secrecy. The owner’s mere desire or intent to keep information a secret is not enough.

Commercial secrets are easily misappropriated because they represent nothing more than information, which can be memorized, scribbled down, ed or copied onto some tangible medium and then quietly removed from company premises. Once commercial secrets fall into the hands of an unscrupulous competitor or former employee, they can be clandestinely put to immediate use. Depending on the nature of the commercial secrets, a competitor or former employee may be able to take and make use of the secrets without getting caught. For example, if the commercial secrets involve a timesaving or cost-saving step for a manufacturing process, they could be implemented inside a competitor’s facility without the rightful owner’s knowledge or suspicion.

Merchant, for successful work needs commercial information, it is necessary as the air. He needs constant information about customers, competitors, vendors, dealers (hustlers, intermediaries). Operational data for the analysis, planning, monitoring of vary situations in the market. The market situation is constantly changing and can change at any moment. And if continuity of information data update not established, the firm cannot just react to certain changes and, therefore, cannot avoid the most unpleasant consequences. Anyone who owns the updated information, acts with his opened eyes, that allows to foresee suddenness and confront them. Any merchant from Western firms, before answering the question "What is the status of a particular product on the market?" He goes to the database for this product, listed in the computer to which he has access and looks for continuously updated information on a product, thus there is no danger of getting stale data.

Sources of commercial information a) market research on specific items. However, before you invest in research, data collection and analysis, it is necessary to make a comparative assessment of the spendings on research and the importance (value) of possible outcomes. If importance of gained data exceeds the cost of the research, then it will be adequate; b) an important source of commercial information are internal documents and materials, information on the amount of turnover, costs in sales, stock of goods, profit, costs for advertising, etc. ; c) another source of commercial information are external statistics and data published in the media, information about the state of the market. Nowadays more widespread buying information from different companies, whose main activity is the “collecting, editing of information for sale.“ For example M-Vector (research and consulting company) is specializing in the creation of information and gathering data in CA countries, particularly in Tajikistan.M-Vector

Commercial secret appears when getting access to your resources are the aim of your competitors. In contrast to the state secret, commercial secret is not defined specifically, because it is always different in relation to different companies or firms. The law of commercial secret initially in Tajikistan was appeared in the Civil Code of RT – Article #153 and also in the “Law about Entrepreneurship” including changes and additions to current law on the Chapter 5 th of current law is dedicated to commercial secret and includes two articles (28-29) and it provides a definition of information security and commercial secret.

Civil Code of RT Статья 153. Служебная и коммерческая тайна Гражданским законодательством защищается информация, составляющая служебную и коммерческую тайну, в случае, когда информация имеет действительную или потенциальную коммерческую ценность в силу неизвестности ее третьим лицам, свободного доступа к ней на законном основании и обладатель информации принимает меры к охране ее конфиденциальности. Лица, незаконными методами получившие такую информацию, а также служащие - вопреки трудовому договору или контрагенты - вопреки гражданско-правовому договору разгласившие служебную или коммерческую тайну, обязаны возместить причиненный ущерб.

Статья 28. Охрана коммерческой тайны субъекта предпринимательской деятельности Сведения, не являющиеся государственной тайной, связанные с производством, технологической информацией, управлением средствами и иной деятельностью хозяйствующего субъекта предпринимательства, разглашение которых может нанести вред интересам этого субъекта, относятся к коммерческой тайне. Состав и объем сведений, составляющих коммерческую тайну, устанавливается законом; Охрана коммерческой тайны заключается в запрете разглашения сведений, указанных в части первой настоящей статьи, то есть в запрете распространения сведений среди определенного, либо неопределенного круга лиц в любой форме, а также запрете передачи таких сведений другому лицу. Лицо, незаконно получившее сведения, составляющие коммерческую тайну, не вправе использовать их в собственных корыстных целях, если такое использование может причинить ущерб субъекту права на коммерческую тайну. Запрет не распространяется на хозяйствующего субъекта, использующего производственные, организационные, финансовые и иные новшества, составляющие коммерческую тайну другого хозяйствующего субъекта, если соответствующие сведения получены не в нарушение режима коммерческой тайны. В противном случае такое действие признаётся недобросовестной конкуренцией.

Статья 29. Обязанность государственных органов и должностных лиц по обеспечению коммерческой тайны субъекта предпринимательской деятельности Государственные органы и их должностные лица обязаны не разглашать относящиеся к коммерческой тайне сведения, полученные при регистрации хозяйствующих субъектов, при проверке их деятельности, контроле за условиями работы и при совершении других действий, вытекающих из функций соответствующих органов. При выполнении регистрационных, проверочных или контрольных заданий, государственные и должностные лица не вправе требовать доступа к сведениям, составляющим коммерческую тайну, кроме тех, которые необходимы для выполнения стоящих перед ними задач. Такие же ограничения применяются при представлении государственным органам иных справок.

Examples of Trade Secrets Commercial secrets largely fall into two broad categories: technical information and business information. Keep in mind that technical or business information falling under one of the classes listed below must still satisfy the other elements of a commercial secret in order to meet the legal definition. The commercial secret objects are consider to be information including: R&D, manufacturing process, financial-economic, know-how which has the commercial value and these information uncertainty for third parties, either not accessible in open form on legal grounds and protected by the law, enactments and norms. By owners of such information has established the regime of commercial secret. The regime of commercial secret is legal, organizational and technical approaches using by owners of information with the aim of protection privacy and commercial secret. So, what relates to commercial secrets and requires protection of information leakage, and her abduction?

Business information: ● financial information; ● price information (value) of products and services; ● business plans and new products; ● lists of clients and vendors, contracts, preferences and plans; ● internal market analyses or forecasts; ● Unannounced business relationships one is negotiating or has entered into ● Information about business opportunities, such as opportunities to acquire another company or product ● agreements, proposals, quotas; ● Lists of personnel, organizational charts and employee information (their characteristics).

Technical information ● research and development projects; ● design development for the production of a product and its technical parameters; ● patent applications; ● design, efficiency and the possibility of production methods, equipment and systems; ● information process; ● Negative information, e.g., the designs that didn’t work (includes information that has commercial value from a negative viewpoint, for example the results of lengthy and expensive research which proves that a certain process will not work could be of great value to a competitor”) ● computer software.

A good idea is more valuable than a purse full of gold, and it always easier to steal an idea or a secret. Therefore, in today's world of industrial espionage gets truly gigantic proportions. According to experts, the annual damage to American businesses from theft of commercial secrets amount more than $ 4 billion. In addition to direct abduction, commercial information might be leaked, with the most likely sources: ● personnel, that has access to the information; ● documents that containing secret information; ● hardware and information processing systems, including communication lines along which it is transmitted.

General Precautions Commercial secret owners have a duty to use “reasonable measures” to safeguard their secrecy. A common “reasonable measure” involves putting employees, contractors, vendors and other personnel on notice of the existence and nature of confidential information, and of a contractual duty on their part not to disclose it. Companies may include confidentiality provisions in form contracts, offer letters, requests for bids, and other appropriate documents.

Give workers (both employees and contractors) guidelines as to what sort of information the company considers confidential and how that information should be treated. Require them to sign non-disclosure agreements. Place warning labels on confidential documents and computer login screens. Issue periodic confidentiality reminders to workers as appropriate. In pursuing business opportunities, disclosures of commercial secret information should occur under a license or non-disclosure agreement (itself a confidential document) that describes the information that is being disclosed; states the purpose(s) for the disclosure and the permitted exclusive use(s) of the information; and reiterates the other party’s obligation to maintain the secrecy of the information. Vendors, suppliers, and independent contracting organizations or subcontractors should sign non-disclosure agreements at the inception of any relationship.

If an agreement is not possible, the commercial secret owner should at least make clear its expectation that information is treated as confidential. Although any protection measures must address specific risks applicable in that business and industry, extreme and unduly expensive procedures are not required. Beyond the obvious step of limiting access to confidential information to a “need to know” basis, following is a list of minimum practical “reasonable measures”: ■ Mark confidential documents and materials as such. ■ Put locks on doors and file cabinets (or other forms of restricted access to physical files). ■ Issue employee ID badges. ■ Have specific procedures for visitors (signing in and out, visitor badges, no unescorted visitors).

■ Require security passwords for computers and networks and limit access thereto. ■ Provide a strong commercial secret policy statement in employee handbooks. ■ Have employees, contractors and third parties sign non- disclosure agreements. ■ Do not discuss confidential information (including “hot projects”) during interviews and limit tours of the facility (or have the applicant sign a nondisclosure agreement). ■ Develop a matrix that classifies employees, consultants, contractors, and vendors according to the degree of access that they require and have been given to sensitive information.

What Is Misappropriation? Misappropriation does not need to be a deliberate act; it can occur through negligence or even mistake. “Misappropriation” is a statutory term that defines what one may not do with commercial secrets one does not own. “Misappropriation” means: (1) Acquisition of a commercial secret of another by a person who knows or has reason to know that the commercial secret was acquired by improper means; or (2) Disclosure or use of a commercial secret of another without express or implied consent by a person who: (A) Used improper means to acquire knowledge of the trade secret; or (B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the commercial secret was:

(i) Derived from or through a person who had utilized improper means to acquire it; (ii) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; (C) Before a material change of his or her position, knew or had reason to know that it was a commercial secret and that knowledge of it had been acquired by accident or mistake. This definition of misappropriation can be broken down into three types of prohibited conduct: (1) wrongful acquisition, (2) wrongful use, and (3) wrongful disclosure of someone else’s commercial secret. Each of these is discussed separately below. However, a common thread tying all of these concepts together is “improper means.”

TRADEMARK, COPYRIGHT, OR PATENT What is a trademark or service mark? A trademark is a word, phrase, symbol, or design, or a combination thereof, that identifies and distinguishes the source of the goods of one party from those of others. A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than goods. Throughout this booklet, the terms “trademark” and “mark” refer to both trademarks and service marks. Intellectual Property covers four main areas: Patents - How something works Designs – What it looks like Trade Marks – What you call it Copyright – Artistic or literary expression

Do Trademarks, Copyrights, and Patents protect the same things? No. Trademarks, copyrights, and patents protect different types of intellectual property. A trademark typically protects brand names and logos used on goods and services. A copyright protects an original artistic or literary work. A patent protects an invention. For example, if you invent a new kind of vacuum cleaner, you would apply for a patent to protect the invention itself. You would apply to register a trademark to protect the brand name of the vacuum cleaner. And you might register a copyright for the TV commercial that you use to market the product.

Sometimes a single item can be covered by all four elements, for example, a new lock mechanism could be covered by a Patent for the mechanism, by a Design for the appearance given to the outside, by a Trade Mark for a logo and by Copyright for the installation instructions. Trade marks are badges of origin. They distinguish the goods or services of one trader from another and can take many forms; for example words, slogans, logos, shapes, colours and sounds.

To continue protection the Trade Mark must be Used in commerce Have fees paid as required to keep it in force Must not become generic, such as a noun or verb in common usage Must be identified as a Trade Mark by In some countries Make sure that your chosen trade mark does not infringe someone else’s and that you are free to use it. ®

1.What are the criteria's that consider an information to be a commercial information and secret ? 2.Classify commercial information into categories? 3.What are the sources of information? 4. What are the minimum reasonable measures to protect information and secret?