COSTA RICA Law and Practice Contributed by: Maricruz Villanea Villegas, Roberto Arguello, Edna Lopez and Leyla Harper-Dominique, IDEAS IP
courts to order customs suspension of infringing imports; customs may also act on their own initiative. 4.5 Functionality and Technical Features The Patents Law states plainly that protection does not cover elements or characteristics of an industrial design that serve solely to achieve a technical or func- tional effect. The word “solely” is the key: if a feature has no purpose other than a functional one, it falls outside the scope of design protection. If a feature achieves both a functional purpose and gives the product a distinctive appearance, it is not automati- cally excluded. That said, Costa Rica does not have a developed body of court decisions spelling out how this test is applied in practice. Trade secrets in Costa Rica are governed by the Law on Undisclosed Information ( Ley de Información No Divulgada ; Law No 7975, 2000), with enforcement procedures in Law No 8039 and unfair competition coverage under the Competition Law (Law No 7472, 1994). Executive Decree No 34927 provides imple- menting regulations. Qualifying information includes production methods and formulas, business know-how, test data for phar- maceuticals and agrochemicals, financial and pricing information, customer lists and technical specifica- tions. No patentability or registration is required; the information may be stored in any tangible form Three cumulative conditions must be met: 5. Trade Secrets 5.1 Legal Framework and Protectable Information • secrecy – the information must not be generally known or easily accessible to persons in the rel- evant field; • reasonable measures – the owner must have taken proportional steps to maintain confidential- ity (access restrictions, confidentiality agreements, secure storage); and • commercial value derived from its secret character.
Protection ends if any of these conditions ceases to be met. 5.2 Reasonable Measures and Confidentiality Article 2 of Law No 7975 requires “reasonable and proportional measures” to maintain secrecy; the law does not prescribe a specific list, but the measures must be ongoing. In practice, confidentiality markings on documents, written confidentiality agreements with employees and partners, and access restrictions are the primary indicators courts examine. Any person who accesses undisclosed information through employment, a contractual relationship or a profession, and has been warned of its confidential nature, must refrain from using or disclosing it – this duty survives the end of the relationship (Article 7, Regulation Article 10). Authorised users and licensees are similarly bound; upon license termination, the for- mer licensee must cease use and return all materials containing the secret. 5.3 Misappropriation of Trade Secrets Misappropriation under Article 2 of Law No 7975 cov- ers conduct contrary to honest commercial practices: breach of contract, abuse of confidence, inducement to infringe and acquisition by third parties who knew or should have known the information was obtained through such conduct. Article 6 imposes liability on anyone who uses, acquires or discloses confidential information without authorisation – including those who merely benefit economically from such acts. Employee disclosure of trade secrets known through employment that may cause harm to the owner carries one to three years’ imprisonment (Article 49, Law No 8039). Competitor acquisition, disclosure or exploita- tion of trade secrets through industrial espionage or inducement to breach contractual duties constitutes unfair competition under Article 17 of Law No 7472. Civil unfair competition claims proceed by summary proceeding ( proceso sumario ). 5.4 Duration and Loss of Protection There is no fixed term. Protection continues only while the three qualifying conditions – secrecy, reasonable measures and commercial value – remain in force (Article 10, Law No 7975; Decree No 34927). Protec-
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