Protection of trade secrets

I have a friend who works in a big company in the US. As we were in a conversation one day, he mentioned something called trade secrets and wanted to know how strictly they were being enforced in Tanzania. Kindly guide.

DM, Mwanza

Trade secret is any confidential business information that provides an enterprise with a competitive edge and commercial value because it is kept secret. Common examples include manufacturing processes, software algorithms, marketing strategies, customer lists, and proprietary recipes (such as the Coca-Cola or Pepsi formula). To legally qualify as a trade secret, the information must be valuable precisely because it is secret, known only to a restricted group of people, and subject to reasonable steps by its owner to maintain its confidentiality.

Tanzania does not have a standalone or specific statute that exclusively protects trade secrets. Instead, trade secrets are protected through a fragmented framework combining international treaties, common law principles, and various domestic statutes. From international legal framework, the World Trade Organization, to which Tanzania is a member, provides an international benchmark through article 39 of the TRIPS Agreement. This international standard requires member nations to protect undisclosed information against unfair competition and dishonest commercial practices.

At domestic level, as indicated above, a number of statutes proffer legal guidance regarding protection of trade secrets. For example, the primary tool for enforcing trade secrets in Tanzania is the Law of Contract Act. Businesses rely heavily on Non-Disclosure Agreements (NDAs), non-compete clauses, and confidentiality stipulations in employment. If a party leaks a trade secret, the owner may sue for breach of contract or breach of confidence under common law and equitable principles. Besides, under law of torts, if an outsider steals a trade secret without having signed a contract (e.g., through industrial espionage), the owner can pursue civil remedies under the law of torts for misappropriation or unfair competition. Equally, under the Employment and Labour Relations Act, employees owe a duty of good faith and fidelity to their employers, prohibiting them from exploiting proprietary information for personal gain. This is also the case with the Cybercrimes Act, 2015 under which if a trade secret is stolen through hacking, data breaches, or unauthorized electronic access, criminal liabilities can be pursued for unauthorized access to data.

Because there is no automatic statutory registration for trade secrets (unlike patents or trademarks registered with Business Registration and Licensing Agency), Tanzanian Courts will likely award damages or injunctions if the owner proves they took active, reasonable steps to guard the data.