Protecting Trade Secrets in Guatemala and Latin America: Legal Framework and Best Practices

December 17, 2025

Introduction
In a world driven by innovation, not all valuable assets are visible. Trade secrets — confidential business information, formulas, strategies, and processes — often form the backbone of a company’s competitive advantage. Unlike patents or trademarks, which are publicly disclosed, trade secrets rely on secrecy and strategic protection. For companies in Guatemala and across Latin America, understanding how to protect these intangible assets is crucial to maintain competitiveness and safeguard long-term value.

What is a Trade Secret under Guatemalan Law
Under Guatemala’s Industrial Property Law (Decree 57-2000) and its implementing regulations, “undisclosed information” (secretos empresariales / industriales) may be protected as a trade secret — provided it: (i) is not generally known or readily accessible to persons usually dealing with that kind of information, (ii) has economic value because it is secret, and (iii) is subject to reasonable security measures.

The law explicitly contemplates trade secrets that refer to:

The nature, characteristics or purpose of products or services
Production methods or processes
Distribution or commercialization methods
Customer lists, marketing strategies, business models, algorithms, etc.

Because a trade secret does not require registration, protection begins the moment the information qualifies — but maintaining protection demands consistent and strategic actions.

Why Trade Secrets Matter More than Ever

No public disclosure required. Unlike patents, trade secrets do not require filing a public application, avoiding exposure of valuable know-how.
Flexibility and longevity. As long as secrecy is maintained, a trade secret can theoretically last indefinitely.
Competitive advantage. In sectors like tech, biotech, manufacturing or services, processes, algorithms or customer data may provide a decisive edge.
Cost-efficient protection. For startups and SMEs, trade secrets can be more accessible than patents, saving filing costs and avoiding the complexity of prosecution.

But trade secret protection without strategy is risky: misappropriation, employee turnover, or failure to enforce confidentiality can destroy decades of value.

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Best Practices for Protecting Trade Secrets

Robust Confidentiality Agreements (NDAs)
All employees, contractors, and business partners should sign clearly drafted NDAs. Define what constitutes “confidential information,” outline obligations, and specify consequences for breaches.
Access Controls & Internal Protocols
Limit access to sensitive data only to those who need it. Use secure password-protected systems, physical safeguards, and role-based permissions.
Digital Security Measures
Encrypt critical files, monitor data access, and implement cybersecurity protocols. Secure remote access solutions and consider using logging or audit tools to track data use.
Employee Training & Awareness
Educate all team members on what constitutes a trade secret, why it matters, and how to handle confidential information properly. Make confidentiality part of your company culture.
Exit Procedures & Ongoing Monitoring
When employees or contractors leave the company, enforce exit interviews, return or destruction of confidential materials, and renew confidentiality obligations where applicable.
Clear Documentation & Audit Trails
Maintain records demonstrating the steps taken to preserve secrecy — access logs, security measures, signed agreements, and classification policies. This documentation strengthens legal position if enforcement becomes necessary.

Challenges & Enforcement in Guatemala
Although trade secrets are regulated under the Industrial Property Law, Guatemala does not have a specialized agency dedicated solely to their enforcement. Instead, misappropriation cases often rely on general civil litigation — which can be slow and costly.

Therefore, it is essential that businesses adopt a preventative, internal-first approach rather than waiting for enforcement after a breach occurs.

Conclusion
Trade secrets are among the most strategic and valuable forms of intellectual property — especially for companies whose competitive advantage lies not in patented inventions, but in proprietary know-how. Protecting them requires a holistic approach: legal agreements, internal policies, security measures, and ongoing vigilance.

At IP Right, we help businesses in Guatemala and Latin America identify, protect, and enforce their trade secrets — designing tailored confidentiality frameworks, conducting internal audits, and advising on risk mitigation so that valuable knowledge remains secure.

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