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Civil Code (Section10)

Chapter 68: Right to Protection of Undisclosed Information From Illegal Use

Article 1164. Conditions of Legal Protection of Undisclosed Information

1.A person who lawfully possesses technical, organizational, or commercial information, including secrets of production (or know-how) unknown to third persons (undisclosed information), has the right to protection of this information from illegal use, if the conditions are observed that are established by the Paragraph 1 of Article 141 of the present Code.
2.The right to protection of undisclosed information from illegal use arises independently of the fulfillment with respect to this information of any formalities whatsoever (its registration, acquiring certificates, etc.).
3.The rules on the protection of undisclosed information shall not be applied with respect to information that, in accordance with statute may not constitute an official, commercial, or banking secret (information on legal persons, rights to property subject to state registration, information subject to presentation for state statistical reporting, etc.)
4.The right to protection of undisclosed information shall be effective so long as the conditions provided by Paragraph 1 of Article 141 of the present Code are in effect.

Article 1165. Liability for Illegal Use of Undisclosed Information

1.A person who without legal bases has received, distributed, or is using undisclosed information shall be obligated to compensate the person who lawfully possesses this information for the losses caused by its illegal use.
2.If a person who is illegally using undisclosed information has received it from a person who did not have the right to distribute it, of which the aquirer did not know and should not have known (a good-faith aquirer), the lawful possessor of the undisclosed information has the right to demand from it compensation for losses caused for use of the undisclosed information after the good-faith aquirer learned that it use was illegal.
3.A person lawfully having undisclosed information has the right to demand from a person who is illegally using it the immediate cessation of its use. However, a court, taking into account the funds expended by a good-faith acquirer of undisclosed information toward its use, may permit its further use on the condition of a compensated nonexclusive license.
4.A person who has independently and lawfully acquired information constituting the content of undisclosed information has the right to use this information independently of the rights of the possessor of the corresponding undisclosed information and is not liable to it for such use.

Article 1166. Transfer of the Right to Protection of Undisclosed Information from Illegal Use

1.A person having undisclosed information may transfer all or part of the information constituting the content of this information to another person under a licensing contract (Article 1106).
2.The licensee shall be obligated to take appropriate measures for the protection of the confidential information acquired under the contract and has the same rights to its protection from illegal use by third persons as has the licensor. Unless otherwise provided in the contract, the duty to keep the information confidential remains for the licensee even after the termination of the licensing contract if the corresponding information continues to remain undisclosed information.