Intellectual property · Business law

Trade secret (Geschäftsgeheimnis)

information that is not generally known or readily accessible, therefore has commercial value and is kept secret by its lawful holder through reasonable measures. Examples include recipes, source code and customer lists. Under German law, statutory protection exists only if the business can prove its confidentiality measures (for example access restrictions, encryption or NDAs).

Protecting trade secrets effectively is an organisational task. Protection can nevertheless be obtained with comparatively little red tape, and it depends on the business’s own conduct. But anyone who cannot show in a dispute that they have put effective measures in place has no protection. In practice, it is usually the evidence that is missing. Customer lists sit on an open drive, pricing calculations travel through private mailboxes, former employees keep their access and there are no NDAs. Reasonable measures are those that match the value of the information. Identifying and grading what is worth protecting, limiting access to those who need it, concluding confidentiality agreements with employees and partners, and handling departures in an orderly way. By contrast, according to case law, a clause that declares everything secret across the board is not a reasonable measure. Protection is not absolute. Reverse engineering a purchased product remains permitted unless this is excluded by contract.

Term 39 of 44 · As at 9 September 2026

Licence: CC BY 4.0*

How to cite: Trade secret (Geschäftsgeheimnis), in: Berlin Online Glossary of German Business Law, published by STRUB.LAW, as at 9 September 2026, https://strub.law/en/glossary/trade-secret/, CC BY 4.0

*This licence applies only to the written entries of the Berlin Online Glossary.

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