Trade Secret Protection
as a Strategy for Sustained Business Advantage

In an increasingly competitive business environment, success is not only determined by product or service quality, but also by the ability to manage strategic information that is not publicly known. This type of information is referred to as a trade secret—an intangible asset that can significantly influence the long-term success of a company.

What Is a Trade Secret?

According to Law Number 30 of 2000 on Trade Secrets, a trade secret refers to information in the fields of technology and/or business that is not known to the public, has economic value because it is useful in business activities, and is kept confidential by its owner. Examples of trade secrets include formulas, production methods, marketing strategies, customer data, and even algorithms used in digital business operations.

Legal Protection of Trade Secrets in Indonesia

In Indonesia, trade secret protection is declarative in nature—no formal registration is required. Protection is granted as long as the information is maintained as confidential. However, to strengthen legal standing and evidence in the future, businesses are strongly advised to take formal precautions such as:

Restricting access to confidential information
Marking documents containing sensitive or confidential content
Implementing and enforcing Non-Disclosure Agreements (NDAs) for both internal and external parties who may have access to such information

Risks of Operating Without a Non-Disclosure Agreement

Operating without a legally binding NDA exposes a business to a higher risk of information leakage. Such exposure may result in loss of competitive edge, financial damages, and diminished trust from business partners.

The Role of NDAs in Mitigating Risk

A Non-Disclosure Agreement (NDA) is a legally binding instrument that outlines obligations to maintain the confidentiality of information. NDAs are commonly used in business partnerships, technology collaborations, recruitment of strategic personnel, and investment transactions.

Key components of an effective NDA typically include:

Definition of what constitutes confidential information
Limitations on the use of such information
Duration of the confidentiality obligation
Legal consequences in the event of a breach

Need Help Drafting a Proper NDA?

Drafting a strong and enforceable NDA requires more than a generic template. It demands a thorough understanding of the business context, the nature of the confidential information involved, and the applicable legal framework.

Putranto Alliance provides tailored Non-Disclosure Agreement drafting services designed to meet the specific needs and risks of each client. Our legal team offers:

Carefully structured clauses that legally safeguard your business interests
Industry-aligned NDA practices
Strategic legal advice for proper implementation and enforcement

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