On 1 April 2025, the new Section 273a of the German Code of Civil Procedure (ZPO) enters into force. The new provision will introduce enhanced protection for trade secrets in civil proceedings. By ensuring the confidentiality of sensitive information, it will provide significant added value for litigants and make litigation more attractive.

This new provision is part of a broader legislative initiative by the German government aimed at enhancing Germany’s attractiveness as a venue for legal disputes, both in litigation and arbitration. In this article, we review the new provision, its protective mechanisms, application, and the advantages it offers compared to existing confidentiality measures.

How does Section 273a ZPO protect trade secrets?

The new provision allows parties to request that sensitive information, which may constitute a trade secret, be classified as "confidential."

If the court grants such a request, all parties in the proceedings must maintain confidentiality. They are prohibited from using or disclosing the protected information outside the court proceedings. This obligation remains in effect even after the proceedings have concluded. Violations of this obligation may result in sanctions, including fines of up to 100,000 Euros or imprisonment of up to six months.

Additionally, the court may impose further restrictions, such as limiting access to hearings and to submitted documents to a select group of individuals.

Under what conditions is Section 273a ZPO applicable?

The provision protects information that qualifies as a trade secret under Section 2 No. 1 of the German Trade Secrets Act (GeschGehG).

According to the legal definition, information qualifies as a trade secret if it:

1. is not generally known or readily accessible, either as a whole or in the precise arrangement and composition of its components, to persons within the circles that normally deal with this type of information and is therefore of commercial value, and
2. is the subject of confidentiality measures appropriate to the circumstances by its legitimate owner, and
3. for which there is a legitimate interest in confidentiality.

The court assesses whether the information meets these criteria. Notably, the mere potential that the disclosed information could be a trade secret is sufficient to justify a protective order.

How does Section 273a ZPO differ from existing regulations?

The new provision offers substantial advantages over current confidentiality rules, such as those in Sections 172 No. 2 and 173 (2) of the German Courts Constitution Act (GVG).

At present, courts may order closed-door hearings, but there is no legal entitlement to such protection. Under the new Section 273a ZPO, courts will have limited discretion—once the existence of a trade secret is plausibly demonstrated, such as through a sworn affidavit, courts will generally be required to grant confidentiality protection. Furthermore, denial of protection can now be immediately appealed, unlike under current rules.

Existing confidentiality measures apply only from the oral hearing stage and only to information disclosed during the hearings. This leaves affected parties in a dilemma: they must either withhold key information to safeguard their trade secrets—potentially weakening their legal position—or risk disclosure in order to strengthen their case.

Another significant improvement is the expanded protection against misuse of confidential information. Under current law (Section 174 (3) sentence 1 GVG), the opposing party is allowed to use confidential information obtained during proceedings for their own purposes. However, Section 273a ZPO strengthens legal safeguards by enabling courts to explicitly prohibit such use, ensuring greater security for trade secrets.

Another significant improvement is the broadening of protection criteria: Currently, section 172 no. 2 GVG only refers to an “important” trade secret, “the disclosure of which would violate overriding interests worthy of protection”. Under the new provision of Section 273a ZPO, these two restrictions do not apply. The protection under Section 273a ZPO is provided regardless of the importance of the secret and without weighing up the interests involved.

Conclusion

The introduction of Section 273a ZPO represents a modern expansion of procedural protections in Germany, aligning with international standards and arbitration practices. For companies, the strengthened trade secret protection makes civil litigation in ordinary courts a more attractive option.