Cambodia Investment Review
With Cambodia yet to introduce a formal Trade Secret Law, businesses operating in the country face a growing challenge in protecting proprietary information. To address these concerns, the American Chamber of Commerce (AmCham) Law Committee, in collaboration with the Intellectual Property Association of Cambodia (IPAC), hosted a discussion on February 28 exploring how companies can safeguard trade secrets in the absence of clear legal protections.
The event, held at Hyatt Regency Phnom Penh, brought together legal experts and industry leaders to share insights on managing trade secrets, the risks businesses face, and the evolving regulatory landscape. Among the key speakers were Dr. Virak Prum, Chairman of CamEd Business School; Kang Daravuth, President of IPAC; and Jay Cohen, Director at Tilleke & Gibbons.
Legal and Practical Challenges in Trade Secret Protection
Dr. Virak Prum opened the discussion with an overview of trade secrets, explaining how they differ from patents and copyrights. Unlike other forms of intellectual property that require registration, trade secrets rely on confidentiality to maintain their value. “Trade secrets can include anything from manufacturing processes to client lists and proprietary business strategies,” he said. “The key is that the information must remain undisclosed and provide a competitive advantage.”
Dr. Virak Prum, Chairman of CamEd Business School.
However, the lack of legal protections means businesses must take internal measures to prevent misappropriation. Dr. Prum outlined the importance of Non-Disclosure Agreements (NDAs), Non-Compete Agreements (NCAs), and Assignment Agreements (AAs) in ensuring employees and business partners respect confidentiality obligations.
One of the most common disputes in trade secret protection arises in employment relationships. “But if the output is unrelated to the job and was done in the employee’s own personal time without using any company resource, ownership of that output may be contested.”
Cambodia’s Legal Gap and the Path Forward
Mr. Kang Daravuth, President of IPAC, addressed Cambodia’s legal framework and the challenges businesses face due to the absence of a dedicated Trade Secret Law. While other intellectual property rights are covered under existing legislation, trade secret protection currently falls under general provisions of Cambodia’s Law Concerning Marks, Trade Names, and Acts of Unfair Competition (2002).
“Right now, businesses rely on Article 22 of the Trademark Law, which broadly defines unfair competition but does not specifically outline trade secret protections,” Daravuth explained. “This creates a legal gray area, making enforcement difficult.”
Kang Daravuth, President of IPAC.
He noted that Cambodia’s Ministry of Commerce is drafting a Trade Secret Law, which, if enacted, would provide businesses with stronger legal remedies, including compensation for damages and court injunctions against misappropriation. Until then, he advised companies to strengthen their internal policies and legal agreements to protect sensitive information.
Daravuth also highlighted international frameworks such as the World Intellectual Property Organization (WIPO) Model Provisions on Unfair Competition (1996), which could serve as a foundation for Cambodia’s upcoming law.
Best Practices for Businesses
Providing a practical perspective, Jay Cohen, Director at Tilleke & Gibbons, emphasized the urgent need for businesses to proactively protect their trade secrets. “Companies operating in Cambodia cannot assume they will have legal recourse if their trade secrets are leaked,” he cautioned.
He outlined several key strategies to mitigate risks, including:
Jay Cohen, Director at Tilleke & Gibbons.
Cohen pointed to high-profile international cases, such as Google v. Uber, where a former Google employee was accused of stealing self-driving car technology and providing it to Uber, leading to a $244 million settlement. “These cases highlight the severe financial and reputational damage companies can suffer if they do not have strong protections in place,” he said.
A Growing Concern for Cambodian Businesses
The event concluded with an open discussion, where attendees raised concerns about the increasing risks posed by employee turnover, business partnerships, and cross-border intellectual property theft. Many participants emphasized the need for Cambodia to accelerate the adoption of a Trade Secret Law to align with regional and global standards.
With Cambodia’s growing economy and increasing foreign investment, legal experts predict that trade secret protection will become a more pressing issue in the coming years. Until a formal legal framework is in place, businesses must remain proactive in securing their intellectual assets.
American Chamber of Commerce (AmCham) Law Committee – Trade Secrets Event at Hyatt Regency Phnom Penh on Feb 28, 2025.
The event was made possible with the sponsorship of CamEd Business School and Tilleke & Gibbons, underscoring their commitment to strengthening intellectual property protection in Cambodia.
