Don’t Panic! Here’s How to Handle Former Employees Leaking Company Secrets

Are you worried that a former employee might leak important secrets from your company, potentially causing significant damage to your business? Don’t panic! A leak of company information can indeed have serious consequences, from losing client trust to facing unhealthy competition. However, you don’t have to feel powerless. There are several legal steps you can take to protect your business and ensure that your confidential information remains secure.

In this article, we will discuss in detail what constitutes a company secret and the strategies and legal actions you can implement to address this situation.

What Are Company Secrets?

According to Article 23 of Law No. 5/1999 and the Constitutional Court Decision No. 85/PUU-XIV/2016, a company secret is defined as information about business activities that is kept confidential. A leak of this information can harm your business and create unhealthy competition.

Elements of a Company Secret

1. Confidential Nature: The information is kept from the public.

2. Potential Loss: A leak can lead to significant damage.

3. Economic Value: This confidential information has value for the company.

What’s the Difference Between Trade Secrets and Company Secrets?

• Trade Secrets: Information that is not publicly known, has economic value, and is kept confidential. The owner can license it to other parties.

• Company Secrets: Information about business activities that is only accessible to relevant individuals and doesn’t always hold the same economic value as trade secrets.

Legal Protection

Laws protect your company secrets. Article 23 of Law No. 5/1999 prohibits colluding to acquire a competitor's company secrets. If violated, this action can be considered an unlawful act (PMH), allowing the aggrieved party to seek damages under Article 1365 of the Civil Code.

Legal Steps You Can Take

1. Lawsuit for Damages: You can sue a former employee who leaked company secrets on the grounds of unlawful conduct.

2. Report to KPPU: If there is a violation, you can report it to the Business Competition Supervisory Commission (KPPU) to seek administrative sanctions against the involved parties.

Don’t Hesitate, Protect Your Business Legally

Protecting your company secrets is crucial for maintaining your business's competitive edge. Understand the differences between trade secrets and company secrets, and take advantage of the legal protections available in case of a leak. With the right steps, you can safeguard your company’s vital information from irresponsible individuals.

If you need further assistance in dealing with legal issues related to company secrets or want professional advice, don’t hesitate to contact Accenta. We are ready to help you ensure the security and continuity of your business!