Management Models for Achieving the Reasonable Measures Requirement of Trade Secret Protection Using Blockchain

Management Models for Achieving the Reasonable Measures Requirement of Trade Secret Protection Using Blockchain

Trade secrets (TSs) are information that is critical to the competitiveness of corporations. A survey in 2021 Q3 showed that most Taiwanese companies are worried about the leakage of their confidential information. According to the Trade Secret Act1, one defining element of a TS is that“its owner has taken reasonable measures to maintain its secrecy.”However, the vague word“reasonable”can confuse companies regarding their TS protection. In this study, a blockchain based on the study of 12 judicial cases regarding“reasonable measures for trade secrets”in Taiwan since 2018 and integrating a“Hyperledger Fabric Composer and Log”is created for providing reasonable measures for TS protection that meet legal practice requirements. We propose a six-layer blockchain architecture and design smart contracts; the project includes CTO file, Javascript (JS) file, and access control list (ACL) file. In addition, we introduce the New Product Development process of the Product Development Management Association to meet the R&D requirements of high-technology companies. Finally, this study provides four practical suggestions for companies interested in using blockchain technology for implementing reasonable TS protection measures. The established six-layer blockchain enables corporations to create a clear and reasonable hierarchy for TS management that meets the requirements of reasonable measures established by the judiciary. Such a blockchain can help corporations submit powerful judicial evidence by ensuring sufficient information for claims.