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This is a Content Analysis study.

September 12, 2025

Integrating Legal and Technological Mechanisms for Trade Secret Protection in Sustainable Innovation and Commercialisation

Key Points

Weak legal frameworks and limited enforceability hinder trade secret protection, impacting innovation and commercialisation.
Protection for trade secrets relies on their confidentiality, but digital tools lack independent legal recognition.
Comparative analysis highlights challenges in Malaysia's trade secret frameworks compared to those in the US, UK, and EU.
Developing an integrated framework combining legal and technological measures may enhance trade secret security and foster economic growth.

Abstract

Intellectual Property (IP) is a vital intangible asset that supports innovation and commercialisation in today’s business environment. The World Intellectual Property Organization (WIPO) defines IP includes creations of the mind such as inventions, literary and artistic works, designs, and commercial symbols. These creations are granted legal rights, enabling their owners to control and benefit from their use. IP is divided into registered types like patents, trademarks, industrial designs and geographical indications which require official registration and unregistered types such as copyright and trade secrets. Copyright protection arises automatically upon creation while trade secrets remain protected as long as their confidentiality is maintained. Trade secrets refer to confidential business information that provides a competitive advantage, including formulas, methods, processes or commercial strategies. However, trade secrets face challenges in protection due to weak legal frameworks and limited enforceability. Article 39(2) of the Trade Related Aspect of Intellectual Property (TRIPS) Agreement obliges member states to adopt “reasonable steps” for trade secret protection, but this vague wording often results in inconsistent implementation. Furthermore, while digital tools such as encryption and access control enhance secrecy, they lack independent legal standing. This study examines the adequacy of legal and technological protection mechanisms for trade secrets, particularly in Malaysia and compares them with frameworks in the United States (US), United Kingdom (UK) and European Union (EU). It also explores the risks associated with weak trade secret protection in a digital era where virtual collaboration, AI, and cloud-based systems dominate. Without robust legal-technological integration, misappropriation risks increase, hindering sustainable innovation and economic growth. The research uses legal and content analysis to propose a comprehensive framework integrating legal instruments and digital security tools. The findings aim to support policymakers, businesses, and innovators in developing effective strategies to safeguard trade secrets, fostering sustainable innovation and trust in commercial ecosystems.

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