Toward the end of 2024, two well-known electric vehicle manufacturers, Tesla and Rivian, reached an out-of-court settlement in a dispute concerning trade secret misappropriation (in the matter Tesla Inc v. Rivian Automotive Inc et al, Case No. 20CV368472 (Cal. Super. Ct., Santa Clara County)). In July 2020, Tesla filed a lawsuit against Rivian, alleging that Rivian recruited and hired Tesla employees who disclosed confidential information related to electric vehicle battery technology, and that it encouraged those employees to provide such confidential information. For four years, Rivian sought to dismiss these allegations, claiming that the lawsuit was unfounded, while the continuation of trial proceedings had been scheduled for March 2025. That did not occur.<\/p>\n\n\n\n
In April 2025, Prema Engineering filed a lawsuit against Lamborghini also for trade secret misappropriation (case Prema Engineering S.r.l. v. Automobili Lamborghini S.p.A., (1:25-cv-00602) District Court, W.D. Texas). This case is currently ongoing, and therefore we will provide only a few introductory remarks, without further comment. The claim against Lamborghini concerns unauthorized access to and use of a ‘steering wheel setup’ file following the termination of their business and technical cooperation. Prema Engineering alleges that during its collaboration with Lamborghini and the Iron Lynx racing team in 2024, Lamborghini copied multiple setup files in violation of agreed restrictions on their use. The matter allegedly originated from access to a steering wheel provided for limited simulator testing at the Circuit of the Americas in July 2024. This case has drawn public attention because it involves two Italian companies in a dispute adjudicated in the United States, which again brings into focus the simulator session at the Circuit of the Americas in Texas and the establishment of U.S. jurisdiction.<\/p>\n\n\n\n
As noted in the literature, trade secret disputes are becoming increasingly frequent with the rise of electric vehicle production. Thus, the Supreme People\u2019s Court of China ordered electric vehicle manufacturer WM Motor Technology Group Co., Ltd (WM Motor) to pay damages in the amount of RMB 640 million to Zhejiang Geely Holding Group Co Ltd (Geely) for trade secret misappropriation, namely the unlawful appropriation of technology.<\/p>\n\n\n\n
Trade secrets represent a well-established means of protecting confidential information and innovation, and with the emergence of new technologies, their importance has further increased – particularly in light of the growing prevalence of electric vehicles.<\/p>\n\n\n\n
Why trade secrets specifically? While other forms of intellectual property protection require application and registration procedures, trade secrets can be invoked as needed and adapted depending on the circumstances. As a means of protection, trade secrets are particularly suitable for safeguarding innovation and all data generated in that context. More importantly, a trade secret remains protected as long as its confidentiality is preserved. Furthermore, trade secrets allow for the protection of various types of information that cannot be protected in any other way. For example, trade secrets may cover negative know-how, i.e., internal data explaining why certain strategies or development paths were not pursued in the development of a particular technology. This also includes commercial and financial strategies.<\/p>\n\n\n\n
In business operations, and in order to accelerate market entry, situations often arise where it is necessary to share trade secrets with suppliers, partners, and other involved parties. This leads us to the methods of protecting trade secrets\u2014primarily through contractual arrangements. A comprehensive intellectual property protection strategy of a company can be achieved by combining trade secrets with other forms of intellectual property protection such as patents, copyright deposits, industrial designs, and trademarks. Each of these forms of protection serves its own specific purpose.<\/p>\n\n\n\n
In accordance with the WIPO guidelines (WIPO Guide to Trade Secrets and Innovation, 2024, WIPO), the importance of trade secrets is reflected in four key areas on which companies should focus. In order to preserve confidentiality and competitive advantage, the trade secret holder must establish internal mechanisms to control access to confidential information in order to protect trade secrets against misappropriation. To avoid exposure to potential claims for trade secret misappropriation by third parties, information coming from outside the company should be handled with particular care. Understanding the value of trade secrets is essential for making informed decisions, as well as for the strategic use of trade secrets in business.<\/p>\n\n\n\n
As stated above, trade secrets last as long as confidential information remains protected by reasonable measures within the applicable legal framework of the relevant jurisdiction. Protective measures most commonly include the conclusion of non-disclosure agreements with employees, partners, suppliers, and other involved parties, prohibiting unauthorized use or disclosure of confidential information. In addition to contractual arrangements, protective measures include internal company procedures such as restricting access to information through physical and technological safeguards, developing internal policies (e.g., a Trade Secret Protection Policy), fostering a company culture of confidentiality, and conducting periodic assessments of which employees require access to confidential information.<\/p>\n\n\n\n
As previously stated, what can be protected as a trade secret depends on the jurisdiction and on a thorough understanding of the applicable legal framework of that jurisdiction.<\/p>\n\n\n\n
Trade secret protection in Serbia has been regulated since 2021 by the Law on the Protection of Trade Secrets. This law defines trade secrets, reasonable measures for their protection, and regulates the acquisition, use, and disclosure of trade secrets, as well as civil law protection. In its final section, the Law on the Protection of Trade Secrets prescribes sanctions for commercial offenses in cases of unlawful acquisition, disclosure, and use of trade secrets.<\/p>\n\n\n\n
The duty to safeguard trade secrets is also referenced in the Company Law, as one of the special duties owed to a company by specifically enumerated persons and their related parties.<\/p>\n\n\n\n
Trade secrets also enjoy criminal protection, as provided under Article 240 of the Criminal Code entitled Disclosure of Trade Secrets.<\/p>\n\n\n\n
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Note: This text reflects solely the personal opinion of the author and does not constitute legal advice.<\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Toward the end of 2024, two well-known electric vehicle manufacturers, Tesla and Rivian, reached an out-of-court settlement in a dispute concerning trade secret misappropriation (in the matter Tesla Inc v. Rivian Automotive Inc et al, Case No. 20CV368472 (Cal. Super. Ct., Santa Clara County)). In July 2020, Tesla filed a<\/p>\n","protected":false},"author":2,"featured_media":1277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[1024,376,377,963,117,156,130,22,124,813,1175,545,1177,1084,1003,1169,1173,1176,1168,1170,1174,21,1171,1172,1079],"class_list":["post-1281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-attorney-at-law-lucija-vranesevic-grbic","tag-attorney-belgrade","tag-attorney-serbia","tag-automotive-industry","tag-company-law","tag-competition-law","tag-contract-law","tag-corporate-law","tag-electric-vehicles","tag-ip-protection-serbia","tag-know-how-protection","tag-law-firm-belgrade","tag-law-firm-belgradem","tag-law-firm-for-companies-serbia","tag-law-firm-for-compliance-serbia","tag-law-firm-for-electric-vehicles","tag-law-firm-for-ip-protection-serbia","tag-law-firm-for-know-how-protection","tag-law-firm-for-the-automotive-industry-serbia","tag-legal-compliance","tag-negative-know-how","tag-tech-law","tag-trade-secret-protection","tag-trade-secret-protection-serbia","tag-trade-secret-serbia"],"acf":[],"yoast_head":"\n