LAW OF THE KYRGYZ REPUBLIC

of March 30, 1998 No. 27

About trade secret

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on March 2, 1998

This Law determines the legal basis of protection of trade secret in the territory of the Kyrgyz Republic.

The purpose of this Law is protection of trade secret and prevention of unfair competition when implementing economic activity.

Chapter 1. General provisions

Article 1. Concept of trade secret

1. The trade secret is understood as the data which are not the state secret connected with production, technology, management, financial and other activities of business entity which disclosure can cause damage to its interests.

2. The data which are trade secret are property of the subject of entrepreneurship or are in its ownership, use, the order in the limits set by it according to the legislation.

Article 2. Requirements to the data which are trade secret

The data which are trade secret shall conform to the following requirements:

a) have the real or potential value for the subject of entrepreneurship;

b) not be well-known or public according to the legislation;

c) be designated as appropriate with acceptance by subjects of entrepreneurship of proper measures on preserving their confidentiality through classification system of the called data, development of internal regulations of restriction of use, introduction of the corresponding marking of documents and other data carriers, the organizations of accounting, storage and application.

Article 3. Unauthorized disclosure of trade secret

Unauthorized disclosure of trade secret is understood as intentional actions of the employees of business entity having the data which are trade secret or other physical persons and legal entities having access to trade secret, or which illegally received the data which are trade secret, entailed their premature opening and uncontrolled use or distribution therefore it is put or damage can be caused to interests of business entity.

Chapter II. Subjects and objects of trade secret

Article 4. Subjects of trade secret

1. The physical persons and legal entities of the Kyrgyz Republic, and also other states which are engaged in business activity in the territory of the Kyrgyz Republic treat subjects of trade secret.

2. The state guarantees the right of the subject of trade secret to its observance and protection in stipulated by the legislation procedure.

Article 5. Objects of trade secret

1. Objects of trade secret are purposely hidden economic interests and data on various parties and spheres of production and economic, management, scientific and technical, financial activities of business entity which protection is caused by interests of the competition and possible threat of economic safety of business entity.

2. Content and amount of the data which are trade secret are determined by subjects of entrepreneurship.

3. Cannot treat objects of trade secret:

a) constituent documents, and also the documents granting the right to occupation business activity and separate types of the economic activity which is subject to licensing (the charter, the decision on creation of the company or the agreement of founders, registration certificates, licenses, patents);

b) data in the approved forms of the statistical reporting, and also reporting on financial and economic activities and other data necessary for check of correctness of calculation and tax payment, and also other obligatory payments;

c) documents on tax payment and other obligatory payments;

d) the documents certifying solvency;

e) data on number, the list of workers, the salary of the head of the organization and members of collegiate executive body of the organization, wages system, about working conditions, including about labor protection, about indicators of industrial traumatism and professional incidence and availability of free workplaces;

g) data on environmental pollution, antitrust violation, non-compliance with industrial safety rules, the sales of products doing harm to health of consumers and also about other violations of the law and the extent of the damage caused at the same time;

h) data on participation of officials of the state companies in the organizations which are engaged in business activity.

Article 6. Competence and responsibility of subjects of trade secret

1. The procedure for protection of trade secret according to this Law is determined by subject of entrepreneurship or the head appointed by it which brings it to the workers having access to the data which are trade secret.

2. Violation by employees of business entity, other physical persons and legal entities of the entrepreneurship established by the subject or the head of procedure for protection of trade secret appointed by it attracts responsibility, stipulated by the legislation.

3. The subject of entrepreneurship bears the personal responsibility for creation of necessary conditions for ensuring safety of trade secret.

4. The state assists the subject of entrepreneurship in creation of necessary conditions for ensuring safety of trade secret.

Chapter III. Protection of trade secret and access to it

Article 7. Mechanism of determination of procedure for protection of trade secret

Subjects of trade secret develop instructions, provisions for ensuring safety of trade secret in which are determined:

a) structure and amount of the data which are trade secret;

b) procedure for assignment of signature stamp <secret of the company> to data, works and products and its removals;

c) the procedure of the admission of employees of business entity, and also persons involved in its activities to the data which are trade secret;

d) procedure for use, accounting, storage and marking of documents and other data carriers, products, data on which are trade secret;

e) the organization of control of procedure for use of the data which are trade secret;

e) procedure of acceptance of cross liabilities by business entities for preserving trade secret in case of the conclusion of agreements on carrying out any collateral actions;

g) procedure for application of stipulated by the legislation measures of disciplinary, material impact on the workers who divulged trade secret;

h) assignment of responsibility for ensuring safety of trade secret on the official of business entity.

Article 8. Employee obligations of business entity on preserving trade secret

1. The employees of business entity having access to the data which are trade secret shall:

a) keep trade secret which will become known to them on work and not disclose it without the permission issued in accordance with the established procedure provided that the data which are trade secret were not known to them earlier or were not received by them from the third party without obligation to observe concerning their confidentiality;

b) fulfill requirements of instructions, provisions, orders for ensuring safety of trade secret;

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