Protecting Your Trade Secrets in Bulgaria

Published on October 1, 2025 and written by Cyril Jarnias

In an economic environment where competitiveness is increasingly fierce, the protection of trade secrets becomes a crucial issue for companies operating in Bulgaria. Trade secrets, which encompass everything from product formulas to marketing strategies, are essential intangible assets that are vital to preserve in order to maintain a competitive advantage. This article explores the measures to adopt to ensure the confidentiality of this sensitive information, focusing on the available legal tools, such as non-disclosure agreements, and the best practices to establish within companies to prevent information leaks.

Understanding the Legal Framework for Trade Secret Protection in Bulgaria

Legal Definition of Trade Secrets in Bulgaria

Bulgarian legislation defines trade secrets through two main laws: the Protection of Competition Act and the Trade Secret Protection Act.

According to the Protection of Competition Act, a “production or trade secret” is defined as facts, information, decisions, and data related to economic activity, the confidentiality of which is in the interest of the legitimate rights holders, and for which they have taken the necessary measures.

The Trade Secret Protection Act, on the other hand, provides a more detailed definition. A “trade secret” is defined as any business information, know-how, and technological information that simultaneously meets the following requirements:

– It is secret, meaning it is not, in its entirety or in the precise configuration and assembly of its elements, generally known or readily accessible to persons within the circles that normally deal with the kind of information in question. – It has commercial value because it is secret. – It has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it secret.

Legal Framework for Trade Secret Protection

The Bulgarian legal framework for trade secret protection is structured around several legislative texts:

The Trade Secret Protection Act establishes the terms and procedures for protection against the unlawful acquisition, use, and disclosure of trade secrets within the context of civil judicial proceedings. It transposes the requirements of the European Trade Secrets Directive and complements existing legal remedies under the Protection of Competition Act.

The Protection of Competition Act prohibits the disclosure of production or trade secrets in violation of good business practices. It provides that the Commission for the Protection of Competition can conduct investigations and impose fines or monetary penalties in case of violation.

The Bulgarian Commercial Code imposes an obligation on agents, representatives, commercial agents, shop assistants, and brokers to protect the trade secrets and reputation of the persons who have entrusted them with a particular task.

Company Obligations Regarding Protection

Companies in Bulgaria have an obligation to take reasonable measures to protect their trade secrets. This involves:

– Implementing internal policies and procedures to identify and protect confidential information. – Using confidentiality agreements with employees, partners, and suppliers. – Implementing physical and electronic security measures to restrict access to sensitive information. – Training employees on the importance of confidentiality and trade secret protection procedures. – Limiting access to confidential information on a “need-to-know” basis.

It is crucial for companies to demonstrate that they have taken active steps to protect their trade secrets, as this can influence their ability to obtain legal protection in case of infringement.

Legal Remedies and Sanctions

In case of trade secret infringement, legitimate holders have several legal remedies:

– They can file a civil lawsuit to obtain damages and injunctions to stop the unlawful use or disclosure. – The Commission for the Protection of Competition can impose administrative fines on offenders. – In some cases, criminal prosecution may be initiated for theft or economic espionage.

Sanctions can include:

– Compensatory and punitive damages. – Injunctions prohibiting the continued use or disclosure of trade secrets. – Seizure or destruction of infringing products. – Administrative fines of up to 10% of the offender’s annual turnover.

Complaints can be filed with the Commission for the Protection of Competition or directly with the civil courts, depending on the nature of the infringement and the remedies sought.

Alignment with European Legislation

Bulgarian trade secret legislation is closely aligned with European Union directives. The Trade Secret Protection Act directly transposes Directive (EU) 2016/943 on the protection of undisclosed know-how and business information against their unlawful acquisition, use, and disclosure.

This harmonization ensures that trade secret protection in Bulgaria complies with European standards, thereby facilitating cross-border protection of corporate confidential information within the EU.

Alignment with European legislation strengthens the position of Bulgarian companies in the single market, offering them protection mechanisms comparable to those in other EU Member States.

Best Practices for Protecting Your Sensitive Data

Bulgarian Legal Framework for Trade Secret Protection

Bulgaria has established a robust legal framework to protect corporate trade secrets and sensitive data. The Bulgarian Trade Secret Protection Act, adopted in 2019, transposes the European Trade Secrets Directive and provides comprehensive protection against the unlawful acquisition, use, and disclosure of trade secrets. This law defines trade secrets as information that:

• Is not generally known or readily accessible
• Has commercial value because it is secret
• Has been subject to reasonable steps to keep it secret

Furthermore, the Bulgarian Commercial Code imposes confidentiality obligations on employees and business partners. The Personal Data Protection Act complements this framework by regulating the processing of personal data.

Implementing Robust Internal Policies

To ensure effective protection of trade secrets, Bulgarian companies must implement strong internal policies. This involves:

– Classifying sensitive information and establishing appropriate access levels – Developing clear procedures for handling confidential information – Implementing confidentiality agreements with employees and business partners – Defining protocols for managing security incidents

These policies should be regularly reviewed and updated to adapt to evolving threats and regulations.

Employee Data Security Training

Employee awareness and training are essential for protecting trade secrets. Bulgarian companies should:

– Organize regular training sessions on data security – Inform employees about the risks associated with sharing sensitive information – Teach best practices for password management and mobile device use – Simulate phishing attacks to test employee vigilance

This training should be tailored to different roles within the company and updated regularly.

Encryption and Strong Authentication Technologies

The use of advanced technologies is crucial for protecting trade secrets. Bulgarian companies should consider:

– Encrypting sensitive data at rest and in transit – Implementing multi-factor authentication for access to critical systems – Using Identity and Access Management (IAM) solutions – Implementing Intrusion Detection and Prevention Systems (IDS/IPS)

These technologies should be regularly updated to address new security threats.

Access Management and Personnel Control Strategies

Effective access management is essential for protecting trade secrets. Bulgarian companies should:

– Apply the principle of least privilege to limit access to sensitive information – Implement access revocation procedures for departing employees – Use logging systems to track access to confidential information – Conduct regular audits of access rights

These measures ensure that only authorized persons have access to trade secrets.

Regular Assessment of Protection Systems

To ensure the effectiveness of protection measures, Bulgarian companies must:

– Conduct regular risk assessments – Perform penetration testing to identify vulnerabilities – Continuously monitor systems to detect suspicious activity – Update security protocols based on assessment results

These assessments ensure that protection measures remain effective against evolving threats.

Engaging Cybersecurity Professionals

Bulgarian companies should consider engaging cybersecurity experts to:

– Audit existing security systems – Design and implement advanced security solutions – Train staff on security best practices – Respond promptly to security incidents

External expertise can provide valuable perspective and specialized skills to strengthen trade secret protection.

Examples of Best Practices

Several companies in Bulgaria and abroad have adopted exemplary practices to protect their trade secrets:

– A Bulgarian technology company implemented a multi-level data classification system, with strict access controls for each level. – A multinational operating in Bulgaria uses end-to-end encryption solutions to protect its sensitive communications. – A pharmaceutical company implemented a comprehensive data security training program for all its employees, with quarterly updates. – A financial services company adopted a behavior-based security approach, using artificial intelligence to detect suspicious activities.

These examples show the importance of a multidimensional approach to trade secret protection, combining advanced technologies, robust policies, and continuous staff training.

Using Intellectual Property to Strengthen Protection

Intellectual Property Protections in Bulgaria

In Bulgaria, companies have several intellectual property tools to strengthen the protection of their trade secrets. The main types of protection available are:

Patents: They protect new technical inventions for a period of 20 years from the filing date. The Patent Office of the Republic of Bulgaria is responsible for their examination and grant.

Trademarks: They allow distinguishing a company’s products or services for a period of 10 years, renewable indefinitely.

Designs and Models: They protect the appearance of a product for an initial period of 5 years, renewable up to 25 years.

Copyright: It covers original works for the life of the author plus 70 years after their death.

Integration into a Comprehensive Strategy

The strategic use of these tools can effectively complement trade secret protection:

– Patents can protect certain technical aspects of an innovation while keeping other key elements secret. – Trademark registration secures the commercial identity linked to a secret. – Copyright protects the concrete expression of confidential ideas.

However, these protections have limitations: they involve public disclosure and have a limited duration, unlike trade secrets.

Bulgarian Legal Framework

Bulgaria has a strong legislative framework, aligned with European standards:

– The Patents Act of 1993 governs the protection of inventions. – The Marks and Geographical Indications Act of 2019 regulates trademark registration. – The Copyright and Neighboring Rights Act protects original works.

These laws facilitate the registration and maintenance of intellectual property rights, providing a solid legal basis for their enforcement.

Concrete Examples and Practical Advice

Case Study: A Bulgarian biotechnology company patented an innovative manufacturing process while keeping its exact formula secret. This hybrid approach effectively deterred competitors while preserving a long-term competitive advantage.

Advice for Companies:

– Conduct a comprehensive intellectual property audit to identify assets to protect. – Strategically combine different types of protection based on the nature of the information. – Implement strict confidentiality agreements with employees and partners. – Regularly monitor the market to detect potential infringements. – Consult intellectual property experts to optimize the protection strategy.

By adopting a comprehensive approach integrating intellectual property and trade secrets, companies in Bulgaria can build a robust legal shield around their most valuable assets.