Trade Secrets
Trade secrets generally refer to information which is not known to the public, or in the public domain, but is private to the company or individual who possesses that confidential information.
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What are trade secrets?
Trade secrets are confidential information that gives your business a competitive advantage. Such information has value because it is secret.
Confidential information in business can cover a wide range of matters, such as your company’s financial affairs, details of business operations or customer engagements, as well as proprietary algorithms, manufacturing methods or techniques that set your business apart from competitors.
If someone has access to your confidential information, that person is generally obliged under the law to keep that information confidential and cannot disclose the information without permission. Unauthorised disclosure of the information is a breach of such confidentiality obligations and you may take legal action against the person.
Hence, it is important to take reasonable steps to keep such valuable information confidential. In Singapore, trade secrets are primarily protected through the law of confidence.
(a) Protection of confidential information
There are no registration processes for confidential information, and neither is there a time limit within which the confidential information is protected.
Find out more about the legal framework for trade secret protection in Singapore at Section 2 of the Trade Secrets Enterprise Guide.
(b) Tips to safeguard confidential information
Limit Access: Ensure that only certain categories of people (e.g. management) have access to confidential information.
Keep Clear Records: Ensure all business transactions which may contain any confidential information are clearly recorded. The information can also be marked "CONFIDENTIAL".
Non-Disclosure Agreements (NDAs) and Confidentiality Clauses: These can be used to ensure that a person is contractually required to keep the information confidential. Consultants and vendors who receive confidential information should sign NDAs. While employees owe a duty of confidentiality to their employer by law, it is good practice to include confidentiality clauses in employment contracts.
Employee Training: Ensure that employees are educated on the importance of trade secret confidentiality. A policy on trade secret confidentiality should be available to remind employees of confidentiality obligations and processes to keep information secret.
For more practical tips on how to safeguard your confidential information, you may wish to refer to Section 3 of the Trade Secrets Enterprise Guide.
(c) Relationship between confidential information and other types of IP

Confidential Information which comprises of copyrighted material (e.g. instruction manuals, computer software, databases) will be protected by both the law of confidential information and copyright.
For example, a computer software developer can commercialise his software while still keeping the underlying software architecture, algorithm and source code confidential

As a general rule, it is not possible to obtain a patent and ensure non-disclosure of confidential information.
This is because, in return for obtaining a 20-year monopoly to exclude others from making, using or selling the invention, the owner of the invention will have to make full disclosure of the invention during the patent application process. However, prior to disclosure of the invention, the invention may be protected as confidential information.
Trade secrets enterprise guide

Trade secrets are increasingly important for businesses. In fact, Singapore’s Trade Secrets study found that trade secrets is the most important type of IP for our businesses.
To help enterprises and innovators to better protect and manage trade secrets, IPOS has commissioned a Trade Secrets Enterprise Guide, which includes non-exhaustive examples of available trade secret tools and services that enterprises may tap on. This initiative is part of efforts under the Singapore IP Strategy 2030, which is Singapore’s national roadmap for maintaining a world-class IP regime to support innovative businesses for growth, especially in this era of rapid technological advances.
Case Studies
Cynopsis Solutions Pte Ltd: This case study highlights how Cynopsis’ robust trade secrets protection helped them to use their trade secrets, together with other intangible assets, to drive business growth and market expansion.
Nutrition Technologies: This case study illustrates how Nutrition Technologies has effectively protected and managed its trade secrets, including leveraging a trade secrets management platform, to secure its competitive advantage.
Rigel Technology (S) Pte Ltd: This case study showcases the importance of safeguarding trade secrets to prevent misappropriation. It also gives an overview of possible measures that can be taken to safeguard non-registrable IP, including trade secrets.
IP in IoT: Protecting the secrets of an “Internet-of-Toilet” system [PDF, 1.43 MB]
Celligenics: This case study illustrates the roles of patenting, trademarking and collaborations play in relation to trade secrets protection. It further emphasises how Celligenics’ intellectual property strategy complements the business vision to expand beyond Singapore. Healing Wounds and Protecting IP [PDF, 626 KB]
Study on the protection and management of trade secrets in Singapore

The Singapore IP Strategy 2030 has underscored IPOS’ commitment to maintaining a world-class IA/IP regime and supporting innovative businesses in leveraging their IA/IP for growth. This involves looking into current and emerging business trends.
As a part of these efforts, IPOS undertook a study on trade secrets in Singapore, which sought to gain a deeper understanding of Singapore’s trade secret regime as well as the level of knowledge and ability of enterprises operating in Singapore to protect and manage their trade secrets; and how they might be supported, especially in this era of rapid technological advances.
The findings from this study demonstrate that more may be done to support enterprises in the protection and management of their trade secrets, including raising awareness of the importance of trade secrets and increasing accessibility of trade secret-related services.
On the legal framework front, there is also scope to explore refinements to processes for the preservation of confidentiality of trade secrets during legal proceedings.
Taking legal action
Confidential information is breached when someone with access to it discloses it to a third party without permission, uses it for unauthorised purposes, or fails to keep it secure.
If your confidential information has been breached, you may initiate legal proceedings in court. The courts will consider the following when determining whether a breach of confidence has occurred:
Whether the information has the quality of confidentiality.
Whether the information was imparted in circumstances importing an obligation of confidentiality. An obligation of confidentiality can be found even where confidential information has been accessed or acquired without the company’s knowledge or consent.
Whether the information was used to the detriment of the company, or, in cases where the information was not used, whether the person who came into the information is able to demonstrate that his conscience was unaffected. For instance, that he was not aware that the information was confidential or he came across the information by accident.
The court may grant various remedies including:
Injunctions: a court order which prevents the other party from disclosing or using your confidential information.
Damages: monetary compensation for the loss you have suffered as a result of the breach.
Order for delivery-up or destruction: a court order requiring the other party to return or destroy all copies or records of your confidential information.
If confidential information was obtained or accessed through a computer without authorisation, it may also constitute an offence under the Computer Misuse Act.
In Koh Keng Leong Terence v Zhang Changjie [2023] SGMC 96 , an ex-employee was convicted under section 3(1) of the then-Computer Misuse and Cybersecurity Act for unauthorised access to his employer’s confidential information. One day before resigning, the employee sent thousands of files containing proprietary data and confidential information belonging to his employer to his personal accounts. The employee was sentenced to the maximum fine of $5,000 (in default 2 weeks’ imprisonment).
If you believe that confidential information has been taken, disclosed or misused by a third party, you should seek legal advice. For preliminary advice on available remedies and enforcement actions, you can speak with external legal consultants at the IPOS IP Legal Clinic.
Apart from court proceedings, you may also wish to consider alternative dispute resolution methods such as negotiation or mediation. Unlike court proceedings which are held in public, these alternative methods are private and confidential. Find out more about alternative dispute resolution.
