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Abuse of Dominant Position and Globalization & Protection and Disclosure of Trade Secrets and Know-How

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Abstract

Since 1991, Spanish Legislation has provided specific rules bestowing protection upon the trade secrets owners (proprietors) against misappropriation, as well as for the protection of the know-how as confidential business information, but in the Unfair Competition Act and not in a specific Trade Secret Act. Trade secret protection in Spain has its real inception with the enactment of the Spanish Unfair Competition Act (hereinafter, SUCA), when the Spanish Legislator went a step further endowing and enhancing protection with Articles designed for this kind of particular intellectual property (Articles 13 and 14 of the SUCA). According to Article 13 of the SUCA, there is no protection of an exclusive right of the trade secret however, this kind of right has analogies with other intellectual property rights such as the case of a patent proprietor. Hence, with the implementation of this Act in Spain the violation of commercial or trade secret as a legally determined unfair commercial behaviour was established. Nevertheless, Spanish legislation went through several stages prior to the enactment of these specific articles to protect the trade secret owners/proprietors, the most important feature of which was the appearance of provisions for the protection of trade secrets dispersed throughout many legal sources and fields of law. For this reason, the proprietor of trade secrets or know-how has always had to some extent, protection and remedies through a wide array of different legislations, such as the Spanish Patent Act, the Workers’ Statute, the Public Limited Company Act and also the former Spanish Trademarks Act, namely through its former general clause. Even in the framework of criminal law, when the Spanish Legislator included in 1973, trade secret protection in the former Criminal Code. Nonetheless, after the SUCA came into force, the provisions pertaining to the prosecution of the misappropriation of trade secrets in the Criminal Code were not improved until 1995. One of the reasons of this legal dispersion in Spain is due to trade secret and know-how protection, not always having been linked with the discipline of unfair competition, despite its characterization as unfair competition behaviour.

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Notes

  1. 1.

    Act 3/1991, on Unfair Competition (Ley de Competencia desleal), of 10 January 1991, Official State Gazette 1991 [10]; amended in 2009 by Act 29/2009, of 30 December 2009, Official State Gazette 2009 [315] with the implementation of the Directive 2005/29 of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in internal market, OJ 2005, L 149, p. 22; See, inter alia, S. Barona Vilar, Competencia desleal. Tutela Jurisdiccional (especialmente proceso civil) y extra jurisdiccional. Doctrina, legislación y jurisprudencial, t. 1, Tirant Lo Blanch tratados, 2008, p. 560.

  2. 2.

    Law 11/1986 on Patents, of 20 March 1986, Official State Gazette 1986 [73], available in English here: http://www.wipo.int/wipolex/es/text.jsp?file_id=126698.

  3. 3.

    Spanish Workers’ Statute (promulgated by Royal Legislative Decree 1/1995, of 24 March), available in English here: http://www.vss.justice.bg/spain/5/Estatuto_Trabajadores_ENGLISH_pdf.pdf; prohibition on employees to make use of trade secrets since 1931.

  4. 4.

    Spanish Consolidated Act on Joint-Stock Companies, Official State Gazette 1989 [310] and Royal Legislative Decree 1/2010, of 2 July 2010, approving the Consolidated text of the Corporate Enterprises Act, Official State Gazette [2010], of 30 August [210].

  5. 5.

    Article 87 of the former Act 32/1998 on Trademarks (no longer in force); see Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf.

  6. 6.

    Spanish Criminal Code, of 24 November 1995, Official State Gazette 1995 [281], articles 278 to 280, “On felonies related to the Market and Consumers”; available in English here: http://www.sanchezcervera-abogados.com/en/files/2012/06/Criminal_Code_C%C3%B3digo_Penal.pdf.

  7. 7.

    Taking into account that being a Member of the Paris Convention, Spain should guaranteed the enforcement of the protection against any act of competition contrary to the honest practices under the prescribed article. See, A. Font Segura, La protección internacional del secreto empresarial, Eurolex 1999, pp. 95–97; J. A. Gómez Segade, El secreto industrial (Know-how). Concepto y protección, Tecnos 1974.

  8. 8.

    M. L. Llobregat Hurtado, Aproximación al concepto de secreto empresarial en Derecho Español y Derecho Norteamericano, Cedecs Derecho Privado 1999.

  9. 9.

    See Article 4, amended Act 29/2009 on Unfair Competition.

  10. 10.

    For instance, J. A. Gómez Segade, El secreto industrial (Know-how). Concepto y protección, Tecnos 1974; J. Massaguer Fuentes, Comentarios a la ley de competencia desleal, Civitas 1999; A. Suñol Lucea, El secreto empresarial: un estudio del artículo 13 de la Ley de competencia desleal, Thomson Reuters 2013; S. Barona Vilar, Competencia desleal. Tutela Jurisdiccional (especialmente proceso civil) y extra jurisdiccional. Doctrina, legislación y jurisprudencial, t. 1, Tirant Lo Blanch tratados 2008, p. 562; A. García Vidal, La propuesta de la directiva sobre la protección del Know-how, Gómez Acebo & Pombo 2013. See inter alia, Judgment of Spanish Supreme Court 754/2005, of 21 October, Civil Division, Rec. 2005/8274; Judgment Provincial Court of Barcelona, of 1 December 2001 [2001/2005]: id., of 21 December 2001 [2003/1868]:of 13 June 2001 [2004/14067], etc.

  11. 11.

    J.A. Gómez Segade, El secreto industrial (Know-how). Concepto y protección, Tecnos 1974; See Judgement Provincial Court of Cordoba, Sec. 3ª, of 12 December 2014, hereby the Court established a clear concept of trade secret in a criminal prosecution.

  12. 12.

    E. Morón Lerma, F. Morales Prat, La tutela penal del secreto de empresa desde una teoría general del bien público, UAB 2002; J. A. Gómez Segade, En torno al concepto de Know-how. In: Estudios jurídicos en homenaje a Joaquín Garrigues, t.II, Tecnos, 1971, pp. 411–431.

  13. 13.

    See Judgment of the Provincial Court of Zaragoza, Division 5, Neck vs. Neck, 316/2010, of 17 May 2010, [Rec. 2010/3888990] whereby this Provincial Court upheld that the use of the definition given by Article 39 TRIPS Agreement could be used for filling the gap in Spanish provisions. Taking into account under Spanish Constitutional System treaties are self-executing once have been published in the Official State Gazette. Article 39 TRIPS Agreement has been subject to have direct effect in Spain before Spanish Courts, A. Font Segura, La protección internacional del secreto empresarial, Eurolex 1999, pp. 125–134.

  14. 14.

    E. Morón Lerma, F. Morales Prat, La tutela penal del secreto de empresa desde una teoría general del bien público, UAB 2002.

  15. 15.

    Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf, 3.

  16. 16.

    Articles 33 and 38 of Spanish Constitution 1978, available in English here: http://www.congreso.es/portal/page/portal/Congreso/Congreso/Hist_Normas/Norm/const_espa_texto_ingles_0.pdf.

  17. 17.

    M.L. Llobregat Hurtado, Aproximación al concepto de secreto empresarial en Derecho Español y Derecho Norteamericano, Cedecs Derecho Privado, 1999; A. Font Segura, La protección internacional del secreto empresarial, Eurolex 1999; E. Morón Lerma, F. Morales Prat, La tutela penal del secreto de empresa, desde una teoría general del bien público, UAB 2002.

  18. 18.

    See, Spanish Supreme Court 952/2011, Civil Division, of 4 January 2012.

  19. 19.

    Under Spanish provisions we have protection against the misappropriation in labour relations within several fields of law: Workers’ Statute, SUCA, and Article 2 of the Royal Decree 2485/1998, of 13 November (amended by Royal Decree 419/2006 of 7 April on Franchise contracts).

  20. 20.

    Last amended of the Act 29/2009 on Unfair Competition into English available here: https://webgate.ec.europa.eu/ucp/public/index.cfm?event=public.country.viewFile&lawID=29&languageID=EN. In such cases of culpa in contrahendo, the party who is looking for legal coverage against anyone who undisclosed its information before or during the performance of the contract, it could request the civil remedies under Spanish Civil Code, namely Article 1902, which is the general clause for every single civil tort as well as activate the remedies provided by the Article 32 of the SUCA. See, inter alia, R. Bercovitz-Cano, Manual de Derecho civil (Contratos), Bercal 2011, pp. 39 et seq.; Judgment of the Spanish Supreme Court 1762/2014, El Derecho Editores S.A., vs Wolters Kluwer España S.A., of 8 April 2014.

  21. 21.

    See, e.g.: Judgment of the Spanish Supreme Court 952/2012, 4 of January 2012; National Court Order, Criminal Section n° 4, of 19 June 2001, rec. 248770/2001: S. Barona Vilar, Competencia desleal. Tutela Jurisdiccional (especialmente proceso civil) y extrajurisdiccional. Doctrina, legislación y jurisprudencial, t. 1, Tirant Lo Blanch tratados, 2008, pp. 560–561; H. Baylós Corroza, Tratado de Derecho Industrial, Civitas, 2009, p. 337.

  22. 22.

    C. Fernández-Nóvoa, El enriquecimiento injustificado en el Derecho industrial, Marcial Pons 1997, p. 102.

  23. 23.

    Article 197.1 of the Criminal Code refers to discovery and revelation of secrets in general.

  24. 24.

    See, fines and penalties of the Criminal Code in Section 3.1.

  25. 25.

    P.A. De Miguel Asensio, Capitulo II.-Bienes inmateriales, Derecho de la Competencia y Responsabilidad extracontractual. In J. C. Fernández Rozas, R. Arenas García and P. A. De Miguel Asensio, Derecho de los negocios internacionales, 4th ed, Iustel 2013, p. 85; M.L. Llobregat Hurtado, Aproximación al concepto de secreto empresarial en Derecho Español y Derecho Norteamericano, Cedecs Derecho Privado, 1999, pp. 57–59.

  26. 26.

    P. A. De Miguel Asensio, Capitulo II.-Bienes inmateriales, Derecho de la Competencia y Responsabilidad extracontractual. In J. C. Fernández Rozas, R. Arenas García and P. A. De Miguel Asensio, Derecho de los negocios internacionales, 4th ed, Iustel 2013; Judgment of the Spanish Supreme Court 952/2011, of 4 January 2012, whereby the Spanish Supreme Court dismissed the claim of the trade secret proprietor because there was no special duty of confidentiality.

  27. 27.

    In relation to the importance of the animus of the tortfeasor (negligence or bad faith) see e.g.: Judgment of Provincial Court of Granada, of 25 March 2003 [2003/166396]

  28. 28.

    S. Barona Vilar, Competencia desleal. Tutela Jurisdiccional (especialmente proceso civil) y extra jurisdiccional. Doctrina, legislación y jurisprudencial, t. 1, Tirant Lo Blanch tratados, 2008, p. 563.

  29. 29.

    See Sect. 29.4.2.

  30. 30.

    Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf, p. 4.

  31. 31.

    Royal Legislative Decree 1/1996, of 12 April.

  32. 32.

    In case of software programs created by employees this Act grant the right of disclosure to the employees unless otherwise agreed that they belong to the employer.

  33. 33.

    See also Article 37 of the Act 31/1995, of 8 November on Prevention of Occupational Risks, Official State Gazette 1995 [269], available in English at, http://www.insht.es/InshtWeb/Contenidos/Documentacion/FichasPublicaciones/LegisNormalizacion/TextosLegales/Ficheros/lprw-lprl-en-consolidado%20-CON%20CARATULA%20SIN%20NIPO.pdf.

  34. 34.

    M. L. Llobregat Hurtado, Aproximación al concepto de secreto empresarial en Derecho Español y Derecho Norteamericano, Cedecs Derecho Privado, 1999, p. 131. This could be the cause of a right and proper dismissal or discharge, e.g. Judgment of the Superior Court of Madrid, Labour Division, of 13 May 1994, Rec. 1989.

  35. 35.

    Spanish Corporate Enterprises Act, available in English at, http://www.mjusticia.gob.es/cs/Satellite/Portal/1292427002524?blobheader=application%2Fpdf&blobheadername1=Content-Disposition&blobheadervalue1=attachment%3B+filename%3DCorporate_Enterprises_Act_%28Ley_de_Sociedades_de_Capital%29.PDF.

  36. 36.

    See for instance, Judgment of the Spanish Supreme Court 6150/2012, Civil Division, of 3 September 2012 (case “The Cluster Competitiviness Group S.A.”); Judgment of the Provincial Court of Barcelona, of 9 December 2014 (case “SIVERNA CORPORACIÓ”); Judgment of the Provincial Court of Barcelona 354/2013, Sec. 15ª, 9 of October 2013.

  37. 37.

    See, Guía para la protección de la propiedad industrial en Europea (only available in Spanish): http://www.ivace.es/impiva/images/noticias/patentesymarcas/el%20secreto%20industrial.pdf, p. 10.

  38. 38.

    See, Article 7 Spanish Civil Code.

  39. 39.

    This requirement will be decisive in the course of the proceeding for violation of trade secret.

  40. 40.

    S. Bacharach de Valera, Acciones derivadas de la competencia desleal (En torno al artículo 18 de la Ley 3/1991, de 10 de enero, de Competencia Desleal), Revista General de Derecho (562–563), 1991, pp. 6177–6215; M.A. Zurrilla Cariñaña, Acciones civiles en materia de competencia desleal, SPCS Documento de trabajo 2009 (1), available here: http://www.uclm.es/CU/csociales/pdf/documentosTrabajo/2009/01.pdf.

  41. 41.

    Under Spanish Civil Law, damages remedy covers moral prejudice suffered when the unfair behaviour damaged the corporate image, the goodwill and honour, and so forth. See, Spanish Supreme Court, of 22 February 2001.

  42. 42.

    See Sect. 29.3.3.; C. Lema Devesa, Posibilidades y remedies para reprimir la competencia desleal, Derecho de los negocios (1/2), 1990–1991, pp. 205–210.

  43. 43.

    Declarative action can be positive and negative. However, Spanish legal system unlike other countries such as Germany does not specifically recognise negative declarative remedy. Further details, S. Bacharach de Valera, Acciones derivadas de la competencia desleal (En torno al artículo 18 de la Ley 3/1991, de 10 de enero, de Competencia Desleal), Revista General de Derecho (562–563), 1991, pp. 6177–6215; S. Barona Vilar, Competencia desleal. Tutela Jurisdiccional (especialmente proceso civil) y extra jurisdiccional. Doctrina, legislación y jurisprudencial, t. 1, Tirant Lo Blanch tratados, 2008, p. 700; once again opinions diverge widely in Academia with the possibility to request a negative declarative statement order, in favour of a negative declarative statement, R. Bellido Penarés, La tutela frente a la competencia desleal en el proceso civil, Comares 1998.

  44. 44.

    In cases of disclosure of secrets the exercise of this remedy could be difficult, more than anything because it is difficult to restore the situation before the unfair disclosure was made, and the effects of the act are often irreversible; Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf, p. 9; as well as, AIPPI Spanish Group Report Q247, “Trade Secrets: Overlap with restraint of trade, aspects of enforcement”, available here: https://www.aippi.org/download/commitees/247/GR247spain.pdf.

  45. 45.

    See also Article 33.1 in fine (active legal standing) and Article 34.1 in fine and also paragraph 2 of the same Article (passive legal standing) of the SUCA. This remedy will be also possible inasmuch trade secret has a legally similar position than the other types of intellectual property, namely with the patent property as we have already detailed above; C. Fernández-Nóvoa, El enriquecimiento injustificado en el Derecho industrial, Marcial Pons 1997, pp. 99–110.

  46. 46.

    M. L. Llobregat Hurtado, Aproximación al concepto de secreto empresarial en Derecho Español y Derecho Norteamericano, Cedecs Derecho Privado, 1999, pp. 148–149, see references at the footnotes n° 314 and 315.

  47. 47.

    J. M. Otero Lastres, La nueva Ley sobre competencia desleal, Actas de Derecho industrial y Derecho de Autor (t. XIV), 1991–92, pp. 25–48; Nonetheless, opinions diverge widely in academia about this remedy and its implementation in unfair competition claims. Otero Lastres considers this remedy cannot be regarded, as an adequate remedy, under the SUCA.

  48. 48.

    Article 129.3: “Temporary closure of premises or establishments, suspension of the corporate activities and judicial intervention might also be ordered by the Investigating Judge as a provisional measure during the investigation proceedings for the purposes established in this Article and within the limits stated in Article 33.7.”

  49. 49.

    See Spanish Civil Procedure Act, Law 1/2001, of 7 January, on Civil Procedure, Official State Gazette [7] correction of errors in Official States Gazettes [90], of 14 April 2000, and [180], of 28 July 28 2001, available here in English: http://www.mjusticia.gob.es/cs/Satellite/Portal/1292426983864?blobheader=application%2Fpdf&blobheadername1=Content-Disposition&blobheadervalue1=attachment%3B+filename%3DCivil_Procedure_Act_%28Ley_de_Enjuiciamiento_Civil%29.PDF.

  50. 50.

    Paragraph 3 of the Article 247 reads as follows: “Should the courts deem that any of the parties has acted by breaching the rules of procedural good faith, they shall impose on such party through a separate file and respecting the principle of proportionality a fine that may reach one hundred and eighty-six thousand Euros. However, such fine may under no circumstances exceed a third of the amount at issue.”

  51. 51.

    Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf, pp. 9–10.

  52. 52.

    Act 19/2006 of 5 June 2006, Official State Gazette 2006 [134] on expanding means of protection of intellectual and industrial property.

  53. 53.

    See reference at footnote 51.

  54. 54.

    See Articles 730, 733.2 and 739 to 742 of the SCPA and Article 133 of the Patent Act 11/1986.

  55. 55.

    See Article 134. 2 of the Patent Act 11/1986.

  56. 56.

    E. García García, Las diligencias preliminares en los litigios sobre patentes, Jornadas de studio y actualización en material de patentes (“Los lunes de Patentes”), Oficina Española de Patentes y Marcas, 2011, pp. 1–31.

  57. 57.

    Further details, M.I. Villar Fuentes, Las diligencias preliminares de los procesos de propiedad industrial y competencia desleal, monografías 919, Tirant Lo Blanch, 2014.

  58. 58.

    Paragraph 2 of the Article 36 reads as follows: “Such procedures (pre-trial proceedings) shall be implemented in accordance with the provisions of Articles 129 to 132 of Law 11/1986, of 20 March, on Patents, and may include the company’s entire business.”

  59. 59.

    Article 256.8 and paragraph 9 of the SCPA, paragraph 8 reads as follows: “8°. An application by the party intending to bring legal action for infringement of a right of industrial or intellectual property committed through acts carried out at a commercial level, for the exhibition of the (pertinent) banking documents, financial, commercial or customs documents issued within a specific period of time and assumed to be in possession of whom may be sued as liable. The application shall be accompanied by prima facie evidence of the existence of the infringement, which may consist of the presentation of a sample of the specimens, goods or products in which the said infringement has occurred. The applicant may request that the Clerk issues a testimony of the exhibited documents if the served party is unwilling to hand over the document for its incorporation to the proceedings conducted. The same application may be formulated in relation to that established in the final subparagraph of the preceding number. For the purposes of numbers 7 and 8 of this paragraph, acts carried out on a commercial level shall mean acts carried out in order to obtain direct or indirect financial or commercial benefits”.

  60. 60.

    Paragraph 4 of the Article 129 is really relevant in order to protect the trade secrets: 4. “The judge shall ensure that the inquiry to substantiate the facts shall not be used to violate trade secrets or to carry out acts of unfair competition”.

  61. 61.

    General principle of publicity is set up on Articles 20 and 120 of the Spanish Constitution.

  62. 62.

    Article 328.3 reads as follows: “In proceedings dealing with an infringement of industrial or intellectual property rights committed on a commercial scale, the plea for exhibition may particularly extend to any bank, financial, commercial and customs documents produced during a specific period of time and which are assumed to be in the defendant’s possession. Preliminary evidence shall be attached to such plea, which may consist of the submission of a sample of the copies, goods or products through which the infringement may have come about. The court may decide to keep the proceedings secret at the request of any party in order to ensure the protection of confidential data and information”. This paragraph was added by Act 19/2006 of 5 June (Official State Gazette, 2006 [134] of 6 June) extending the means to protect intellectual and industrial property rights and setting forth procedural rules to facilitate the application of several EU regulations; H. Baylós Corroza, Tratado de Derecho Industrial, Civitas (Thomson Reuters), 2009.

  63. 63.

    It should be borne in mind regarding this paragraph, Judgement of the Provincial Court of Madrid, of 22 February 2007 [AC 2007/1813], the Provincial Court herein declared that this rule is not for every single proceeding of unfair competition.

  64. 64.

    Commission Regulation (EU) No 316/2014 of 21 March 2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union of technology transfer agreements; and Commission Regulation (EU) No 330/2010 of 20 April 2010 on the application of Article 101 (3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices, both regulations contain, as is well-known, provisions related to the know-how and its exploitation as an industrial and commercial value.

  65. 65.

    Article 2 of Royal Decree 419/2006 of 7 April on Franchise regime and Article 76 of Act 11/1986 on Patent); Further details see, Spanish Group of the AIPPI, Protecting Trade secrets by means of intellectual property rights and unfair competition statutes, Q215, AIPPI 2010, available here: https://www.aippi.org/download/commitees/215/GR215spain_en.pdf, pp. 12–13; M. Vidal Cuadras y R. Ramón, el Know how y su protección en España, http://www.ub.edu/centredepatents/pdf/doc_dilluns_CP/VidalQuadras_Ramon_%20Know-how_en_ES.pdf; P. A. De Miguel Asensio, Contratos internacionales sobre propiedad industrial, Civitas 1995; J. Massaguer Fuentes, El contrato de licencia de know-how, Bosch, 1999.

  66. 66.

    See Sect. 29.3.1.

  67. 67.

    Article 56 of the Spanish Code of Commerce: “On penalty clause obligations” (see also Articles 1.152 to 1.155 of the Spanish Civil Code). This option avoids the subsequent and complicated estimation and quantification of the damages by the judges during the hearing.

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    Ana María Ruiz Martín

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  3. Kobel Avocat Attorney-at-law, Geneva, Switzerland

    Pierre Kobel

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Ruiz Martín, A.M. (2017). Spain. In: Këllezi, P., Kilpatrick, B., Kobel, P. (eds) Abuse of Dominant Position and Globalization & Protection and Disclosure of Trade Secrets and Know-How. LIDC Contributions on Antitrust Law, Intellectual Property and Unfair Competition. Springer, Cham. https://doi.org/10.1007/978-3-319-46891-4_29

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