Commercial secret and know-how

The know-how belongs to intellectual property in Kazakhstan. Concept of know-how is defined as “secret of production” and know-how is protected in accordance with order and procedure established for commercial secrets.

Technical and scientific information is the result of intellectual creativity; such result is often can be patented and establishes an important part of patentable work.

Know-how is information consisting of the following features:

  • it has real or potential commercial value as it is unknown to the third parties;
  • there is no free access to it on a legal basis;
  • the owner of the information takes measures to protect confidentiality.

The right to protect know-how is valid as long as all above conditions are observed, that means rights to know-how can be not limited in time comparing to the right to protection of patentable objects, the validity term of which is limited.

Any information can be identified by its owner as a commercial secret. The legislation stipulates information that cannot be service or commercial secret. Such information includes company charter, information related to property rights and transactions concerning property, state statistics data, information concerning unfavorable environmental resulting in company’s activity, information about company activity which is subject to state control and any other information stipulated by legislation.

The main features that distinguish know-how from a patent are:

  • Unlimited protection in theory;
  • Know-how may relate to a type of information presented in any form;

State registration of know-how is not required and is not carried out.

Know-how cannot be available in the invention patent description, since the latter is subject to publication and invention description should disclose the invention with sufficient completeness for its implementation.

The most common ways of acquiring know-how by a company (i) creating it by company employees and (ii) transferring know-how under an agreement and in order to define and protect it, it is necessary to take a number of legal, technical and organizational measures.

After proper documentation, know-how can be assessed, contributed to the company’s authorized capital, registered in the balance sheet, and even amortized.

It is advisable to develop and to implement a set of security measures for each company since the subsequent protection and restoration of rights shall require significant expenses and in essence, are unlikely to ensure the actual elimination of a violation.

In this section, information is published concerning Contracts and Agreements – Commercial secret and know-how.

Saule Kulzhambekova

Trademarks and Copyrights

Requests relating to section Contracts and Agreements – Commercial secret and know-how can be forwarded to e-mail address: info@bolotovIP.com marked for Saule Kulzhambekova.