A secret of production shall mean information of any type (production, technological, economic, organizational, and others), including information on the results of intellectual activity in the area of science and technology and information on methods of carrying out the professional activity having real or potential commercial value because it is unknown to third persons, to which such persons have no legal open access and with respect to which the owner of such information has introduced a regime of trade secret.

Article 1466. Exclusive Right to a Secret of Production

1. The exclusive right to use a secret of production in accordance with Article 1229 of the present Code in any manner unrepugnant to a law (the exclusive right to a secret of production), including manufacturing and implementation of economic and organizational solutions shall belong to the owner of the secret of production. The owner of a secret of production may dispose the aforesaid exclusive right.

2. A person, who has received the information constituting the content of the protected secret of production in good faith and independently from other holders of the secret of production, shall acquire an independent exclusive right to this secret of production.

Article 1467. Validity of the Exclusive Right to a Secret of Production

The exclusive right to a secret of production shall be valid as long as the confidentiality of the information constituting its content is maintained. From the time of disclosure of the respective information, the exclusive right to the secret of production shall be terminated for all the rightholders.

Article 1468. Contract for Alienation of the Exclusive Right to a Secret of Production

1. Under the contract for alienation of the exclusive right to a secret of production, one party (the rightholder), transfers or is undertaking commitment to transfer the exclusive right to a secret of production in full scope to other party, the recipient of the exclusive right to the said secret of production.

2. In case of alienation of the exclusive right to a secret of production, the person who has disposed his right shall be committed to keep the confidentiality of the secret of production until termination of the validity of the exclusive right to the secret of production.

Article 1469. License Contract on Granting the Right to Use the Secret of Production

1. Under a license contract one party, the holder of the exclusive right to a secret of production (the licensor), grants or is undertaking commitment to grant to another party (the licensee) the right to use the respective secret of production with the limitations determined by the contract.

2. A license contract may be concluded with an indication or without an indication of the term of its validity. Where the term of validity of a license contract is not indicated in the contract, each of the parties shall have the right to repudiate the contract at any time, notifying the other party not later than six months before the repudiation, unless a longer time period is provided by the contract.

3. In case of granting the right to use a secret of production, the person who has disposed of his right shall be committed to maintain the confidentiality of the secret of production during the whole time period of validity of the license contract.

Persons who have obtained the respective rights under a license contract are committed to maintain the confidentiality of the secret of production until termination of the validity of the exclusive right to the secret of production.

Article 1470. Employee’s Secret of Production

1. The exclusive right to a secret of production, created by an employee in the line of his working duty or a specific task set by the employer (employee’s secret of production) shall belong to the employer.

2. A natural person, who with regard to his working duties or a specific task set by the employer has award a secret of production, is committed to maintain the confidentiality of the obtained information until termination of the validity of the exclusive right to the secret of production.

Article 1471. Secret of Production Obtained Concurrently the Work under a Contract

Where a secret of production is obtained concurrently the work under a labor contract or a R&D contract or under a state or municipal contract for state or municipal needs, the exclusive right to such secret of production shall belong to the contractor (performer) unless otherwise provided by the respective contract (or state or municipal contract).

Where a secret of production is obtained concurrently the work under a contract concluded by the manager-in chief of a manager of budget funds with a federal state institutions, the exclusive right to such secret shall belong to the contractor (performer) unless the contract establishes that this right belongs to the Russian Federation.

Article 1472. Liability for Infringement of the Exclusive Right to a Secret of Production.

1. An infringer of the exclusive right to a secret of production, including a person who has illegally received information constituting a secret of production and who has disclosed or used this information as well as a person committed to maintain confidentiality of a secret of production in accordance with Paragraph 2 of Article 1468, Paragraph 3 of Article 1469, or Paragraph 2 of Article 1470 of the present Code, shall be obliged to pay damages caused by infringement of the exclusive right to the secret of production unless other responsibility is provided by law or by contract with this person.

2. A person who has used a secret of production and did not aware and shall not have a reason to aware that the using is illegal, including with regard to the fact that he has obtained access to the secret of production accidentally or by mistake, shall not bear responsibility in accordance with Paragraph 1 of the present Article.