A step closer to criminalizing use or disclosure of legally held technical trade secrets

The Swedish government submitted the bill “A More Comprehensive Criminal Liability for Attacks on Trade Secrets” (Sw. Ett mer heltäckandestraffansvar vid angrepp på företagshemligheter) to parliament at the beginning of September 2025. Amendment proposals have previously been announced through preparatory works and referral to the Council on Legislation, and now the government has proposed to the parliament that the proposal should become law. The purpose of the amendments is to strengthen the protection of trade secrets by criminalizing certain actions that today only lead to liability for damages under the Act on Trade Secrets (Sw. Lagen om företagshemligheter).

On September 4, 2025, the government submitted the bill “A More Comprehensive Criminal Liability for Attacks on Trade Secrets” to parliament. The government proposes legislative changes aimed at strengthening the protection of trade secrets through additional criminal provisions in the Act on Trade Secrets.

By introducing a new provision – Section 26a – unauthorized actions with trade secrets that one was in fact allowed to possess will also be criminalized. For employers, the change means that an employee who has the right to access the trade secret within the scope of their work can be convicted of a crime if the secret is exploited or disclosed, which is not possible under the current system. In the current order, such actions can only result in the person being liable to compensate for any damage that occurs. The new crime is proposed to be called unlawful exploitation or unlawful disclosure of technical trade secrets.

The expanded criminal liability will only apply to technical trade secrets. For commercial trade secrets, such as customer lists or business strategies, the current order remains where unauthorized attacks, exploitation, or disclosure of trade secrets can only lead to damages. The government justifies the limitation by stating that technical trade secrets are particularly important for innovation and technical development, the competitiveness of Swedish companies, and protection against industrial espionage from foreign powers.

The purpose of criminalizing the exploitation or disclosure of technical trade secrets is to create a more comprehensive criminal law protection that will contribute to better conditions for business, technical development, and increased competitiveness. Ultimately, the change aims to counteract industrial espionage against Swedish industry. The legislative changes are proposed to come into force on January 1, 2026.

Setterwalls’ Comment

Setterwalls closely follows legal developments and the debate around trade secrets and industrial espionage. Just like several referral bodies, our experts welcome the proposal and look forward to having another tool to use when assisting our clients with issues related to trade secrets.

Especially in the field of labour law, issues around trade secrets are recurring and becoming increasingly business-critical in a time of increased mobility in the labour market and increased global uncertainty. We continuously assist our clients in navigating the regulations and working preventively – for example, by reviewing policies, confidentiality clauses, and internal routines – to ensure robust protection for business-critical trade secrets and other confidential material. Given that it is not (yet) criminalized to exploit or disclose commercial trade secrets, employers have even greater reason to ensure they have adequate protection based on the needs of their own operations.