Mind The Cookie - Trade Secrets Are Recipes Until Leaked

Michael Hedges June 29, 2015 - Follow on Twitter

Secrets are the stock in trade of investigative journalism, loosely defined. From juicy details of celebrities and politicians carrying-on to the rough entanglement of stuff some folks would rather the whole world just didn’t know there is hunger and thirst with all the desire a clever headline can raise. Click-bait is this century’s pop-art.

Trade secrets are, by and large, valuable bits of information that enterprises consider assets, particularly when kept confidential. Protecting those assets is a major undertaking. Snooping around for them is also big business. Google’s search algorithms, but one example, is highly sought and very well protected.

The European Union (EU) is slowly but surely readying its Trade Secrets Directive for Member States to approve or not. The draft legislation passed the legal affairs committee of the European Parliament (EuroParl) last week with a few but hardly insignificant wording changes from the original proposed by the European Commission (EC) back in 2013. In the current language - very generally - a secret is a secret because it’s a secret. The “aim (is) to better protect EU businesses against the theft or misuse of trade secrets, such as specific technology, recipes or manufacturing processes, which in turn should boost confidence and increase incentives to innovate.”

Whistleblowers “acting in the public interest” can “reveal misconduct, wrongdoing, fraud or illegal activity” without fear of owners of said trade secrets seeking legal redress under EU or national law. Of interest to news outlets, the legal affairs committee said in its non-binding recital to the draft, quoted by out-law.com (June 18), “acquiring, using or disclosing trade secrets to protect 'a general public interest or any other legitimate interest, recognised by Union or national law and through judicial practice' would also be a protected activity.”

Still murky is the status of an employee’s “know-how” given that people do change jobs and sometimes there’s a relationship between the “experience and skills honestly acquired” in one work-place and employment offered for another. Former employees might also become sources for nosey newsies.

Press freedom advocates pressed for less ambiguous language, concerned that “legitimate purpose” might be cause for self-censorship or worse. The General Assembly of the European Broadcasting Union (EBU), meeting lat week, expressed “deep concern” that the Trade Secrets Directive as approved by the EuroParl legal affairs committee “could genuinely introduce restrictions” on investigative reporting. (See EBU statement here)

“In view of recent financial scandals such as Luxleaks and food safety scandals, it is unimaginable for policy makers to support a law that will legitimately allow big corporations to protect their own interests over those of the public,” said European Federation of Journalists president Mogens Blicher Bjerregård, quoted by politico.eu (June 15), prior th to EuroParl legal affairs committee reading. Luxleaks is the common term for a major journalistic scoop last year revealing how Big Four accounting firms negotiated with government officials in Luxembourg to offer quite generous tax rulings for multinational corporations. Two former employees of one of the Big Four are currently under indictment in Luxembourg for revealing secrets.

See also in ftm Knowledge

Investigative Reporting

Investigative reporters have a storied honor among journalists. Praise is less forthcoming from those with secrets, often ready to use all possible means - legal and otherwise - to avoid detection. New tools are emerging to shed light and tell all. This ftm Knowledge file explores methods, old and new, and the forces prefering darkness. 54 pages PDF (May 2016)

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Press/Media Freedom - Challenges and Concerns

Press and media freedom worldwide is facing challenges from many corners. As authoritarian leaders impose strict control over traditional and new media with impunity, media watchers have concerns for democracy. This ftm Knowledge file accounts the troubles of this difficult decade. 88 pages. PDF (December 2011)

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Media Laws – New and Revised

Policy makers and politicians are writing and rewiting media laws and rules at a breakneck pace. As broadcasters and publishers grapple with changes brought about by digital development, new business models and financial distress, the new media is feeling rules tightening around it. From licensing and public broadcasting to privacy, piracy and copyright this ftm Knowledge file Media Laws – New and Revised summarizes new laws and revised laws from a media perspective. 135 pages PDF (December 2010)

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