### the international dimension of the programme should be boosted aiming at offering a greater number of opportunities for mobility , cooperation and policy dialogue with third countries not associated to the programme . building on the successful implementation of international higher education and youth activities under the predecessor programmes in the fields of education , training and youth , the international mobility activities should be extended to other sectors , such as in vocational education and training . ### the international dimension of the programme should be boosted aiming at offering a greater number of opportunities for mobility , cooperation and policy dialogue with third countries not associated to the programme , especially developing countries . building on the successful implementation of international higher education and youth activities under the predecessor programmes in the fields of education , training and youth , the international mobility activities should be extended to other sectors , such as in vocational education and training , sport and culture .


### the programme should encourage youth participation in europe ' s democratic life , including by supporting participation projects for young people to engage and learn to participate in civic society , raising awareness about european common values including fundamental rights , bringing together young people and decision makers at local , national and union level , as well as contributing to the european integration process . ### the programme should encourage youth participation in europe ' s democratic life , including by supporting participation projects for young people to engage and learn to participate in civic society , raising awareness about european common values including fundamental rights , bringing together young people and decision makers at local , regional , national and union level , as well as contributing to the european integration process .


### the programme should support measures that enhance the cooperation between institutions and organisations active in education , training , youth and sport , recognising their fundamental role in equipping individuals with the knowledge , skills and competences needed in a changing world as well as to adequately fulfil the potential for innovation , creativity and entrepreneurship , in particular within the digital economy . ### the programme should support measures that enhance cooperation between institutions and organisations active in education , training , youth and sport in europe , and also , particularly via tools for virtual cooperation , between european institutions and organisations and their counterparts in developing countries and in the overseas countries and territories , recognising their fundamental role in equipping individuals with the knowledge , skills and competences needed in a changing world , and in properly realising potential for innovation , creativity and entrepreneurship , in particular within the digital economy .


### in line with the commission ' s communication on ' a stronger and renewed strategic partnership with the union ' s outermost regions ' 36 , the programme should take into account the specific situation of these regions . measures will be taken to increase the outermost regions ' participation in all actions . mobility exchanges and cooperation between people and organisations from these regions and third countries , in particular their neighbours , should be fostered . such measures will be monitored and evaluated regularly . _________________ 36 com 623 final . ### in line with the commission ' s communication on ' a stronger and renewed strategic partnership with the union ' s outermost regions ' 36 , the programme should take into account the specific situation of these regions . measures will be taken to increase the outermost regions ' participation in all actions , particularly by means of virtual cooperation . mobility exchanges and cooperation between people and organisations from these regions and third countries , in particular their neighbours , should be fostered , as should online learning programmes . such measures will be monitored and evaluated regularly . _________________ 36 com 623 final .


### appropriate outreach , publicity and dissemination of the opportunities and results of the actions supported by the programme should be ensured at european , national and local level . the outreach , publicity and dissemination activities should rely on all the implementing bodies of the programme , including , when relevant , with the support of other key stakeholders . ### appropriate outreach , publicity and dissemination of the opportunities and results of the actions supported by the programme should be ensured at european , national , regional and local level . the outreach , publicity and dissemination activities should rely on all the implementing bodies of the programme , including , when relevant , with the support of other key stakeholders .


### in order to simplify requirements for beneficiaries , simplified grants in the form of lump - sums , unit - costs and flat - rate funding should be used to the maximum possible extent . the simplified grants to support the mobility actions of the programme , as defined by the commission , should take into account the living and subsistence costs of the host country . the commission and national agencies of the sending countries should have the possibility to adjust these simplified grants on the basis of objective criteria , in particular to ensure access to people with fewer opportunities . in accordance with national law , member states should also be encouraged to exempt those grants from any taxes and social levies . the same exemption should apply to public or private entities awarding such financial support to the individuals concerned . ### in order to simplify requirements for beneficiaries , simplified grants in the form of lump - sums , unit - costs and flat - rate funding should be used to the maximum possible extent . the simplified grants to support the mobility actions of the programme , as defined by the commission , should take into account the living and subsistence costs of the host country . the commission and national agencies of the sending countries should have the possibility to adjust these simplified grants on the basis of objective criteria , in particular to ensure access to people with fewer opportunities and people with political refugee status . in accordance with national law , member states should also be encouraged to exempt those grants from any taxes and social levies . the same exemption should apply to public or private entities awarding such financial support to the individuals concerned .


### the general objective of the programme is to support the educational , professional and personal development of people in education , training , youth and sport , in europe and beyond , thereby contributing to sustainable growth , jobs and social cohesion and to strengthening european identity . as such , the programme shall be a key instrument for building a european education area , supporting the implementation of the european strategic cooperation in the field of education and training , with its underlying sectoral agendas , advancing youth policy cooperation under the union youth strategy 2019 - 2027 and developing the european dimension in sport . ### the general objective of the programme is to support the educational , professional and personal development of people in education , training , youth and sport , in europe and beyond , particularly in the octs , thereby contributing to sustainable growth , jobs and social cohesion and to strengthening european identity . as such , the programme shall be a key instrument for building a european education area , supporting the implementation of the european strategic cooperation in the field of education and training , with its underlying sectoral agendas , advancing youth policy cooperation under the union youth strategy 2019 - 2027 and developing the european dimension in sport .


### policy dialogue and cooperation with relevant key stakeholders , including union - wide networks , european non - governmental organisations , and international organisations in the field of youth , the eu youth dialogue as well as support to the european youth forum ; ### policy dialogue and cooperation with relevant key stakeholders including union - wide networks , european non - governmental organisations and international organisations in the field of youth , including those working with young members of diasporas , the eu youth dialogue , and support to the european youth forum ;


### ‘ lawyer’ means any person , who , in accordance with national law , is qualified and entitled , including by means of accreditation by an authorised body , to provide legal advice and assistance to suspects or accused persons . ### ‘ lawyer’ means any person , who , in accordance with national law , is qualified and entitled , including by means of accreditation by an authorised body , to provide legal advice , assistance and representation to suspects or accused persons .


### eurojust should be given the opportunity to extend the deadlines for storage of personal data , subject to observance of the purpose limitation principle applicable to processing of personal data in the context of all activities of eurojust , in order to achieve its objectives . such decisions should be taken following careful consideration of all interests at stake , including those of the data subjects . any extension of deadlines for processing personal data , where prosecution is statute barred in all member states concerned , should be decided only where there is a specific need to provide assistance under this regulation . ### eurojust should be given the opportunity to extend the deadlines for storage of personal data , subject to observance of the purpose limitation principle applicable to processing of personal data in the context of all activities of eurojust , in order to achieve its objectives . such decisions should be taken following careful consideration of all interests at stake , including those of the data subjects . any extension of deadlines for processing personal data , where prosecution is statute barred in all member states concerned , should be decided exceptionally and only where there is a specific and objective need to provide assistance under this regulation .


### in order to increase the transparency and democratic oversight of eurojust it is necessary to provide mechanisms for the involvement of the european parliament and national parliaments in the evaluation of eurojust ' s activities . this should not hinder the principles of independence as regards action taken in specific operational cases or the obligations of discretion and confidentiality . ### in order to increase the transparency and democratic oversight of eurojust it is necessary to provide mechanisms for the involvement of the european parliament in the evaluation of eurojust ' s activities , particularly with regard to the transmission of eurojust’s annual report . similar proceedings should be arranged for national parliaments . however , those mechanisms should not hinder the principles of independence as regards action taken in specific operational cases or the obligations of discretion and confidentiality .


### on request of a competent authority eurojust shall issue a written opinion on recurrent refusals or difficulties concerning the execution of requests for , and decisions on , judicial cooperation , including those based on instruments giving effect to the principle of mutual recognition , provided it could not be resolved through mutual agreement between the competent national authorities or through the involvement of the national members concerned . the opinion shall be promptly forwarded to the member states concerned . ### on request of a competent authority or on its own initiative , eurojust shall take a decision on recurrent refusals or difficulties concerning the execution of requests for , and decisions on , judicial cooperation , including those based on instruments giving effect to the principle of mutual recognition , provided it could not be resolved through mutual agreement between the competent national authorities or through the involvement of the national members concerned . the decision shall be promptly forwarded to the member states concerned .


### the college may invite any person whose opinion may be of interest to attend its meetings as an observer . ### without prejudice to the provisions in article 39 , the college may invite any person whose opinion may be of interest to attend its meetings as an observer .


### european judicial network contact points may be invited on a case - by - case basis to attend eurojust meetings . ### european judicial network contact points may be invited on a case - by - case basis to attend eurojust meetings , without the right to vote .


### member states shall ensure that the public is informed of the existence , responsibilities and identity of the authorities referred to in the first subparagraph . those authorities shall make the information available in accessible formats upon request . ### member states shall ensure that the public is informed of the existence , responsibilities and identity of the authorities referred to in the first subparagraph . those authorities shall make the information on their own work and the decisions they have taken available in accessible formats upon request from the public concerned .


### information technology capacity building actions are set to attract the greatest part of the budget under the programme . therefore , specific provisions should describe , respectively , the common and national components of the european electronic systems . moreover , the scope of actions and the responsibilities of the commission and the member states should be clearly defined . ### information technology capacity building actions are set to attract the greatest part of the budget under the programme . with a view to cost - effectiveness and regional preferences , the it architecture is based on a combination of common and national components . therefore , specific provisions should describe , respectively , the common and national components of the european electronic systems . moreover , the scope of actions and the responsibilities of the commission and the member states should be clearly defined . there should be smooth interoperability among the common and national components of the european electronic systems and synergies with other electronic systems of relevant eu programmes .


### horizon europe activities shall be primarily delivered through calls for proposals , some of which organised as parts of missions and european partnerships . ### horizon europe activities shall be primarily delivered through transparent calls for proposals , some of which organised as parts of missions and european partnerships .


### the amount referred to in paragraph 1 , first half sentence , may also cover expenses for preparation , monitoring , control , audit , evaluation and other activities and expenditures necessary for managing and implementing the programme , including all administrative expenditure , as well as evaluating the achievement of its objectives . it may moreover cover expenses relating to the studies , meetings of experts , information and communication actions , in so far as they are related to the objectives of the programme , as well as expenses linked to information technology networks focusing on information processing and exchange , including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the programme . ### the amount referred to in paragraph 1 , first half sentence , may also cover expenses for preparation , monitoring , control , audit , evaluation and other activities and expenditures necessary for managing and implementing the programme , including all administrative expenditure , as well as evaluating the achievement of its objectives . it may moreover cover expenses relating to the studies , meetings of experts , information and communication actions , in so far as they are directly related to the objectives of the programme , as well as expenses linked to information technology networks focusing on information processing and exchange , including corporate information technology tools and other technical and administrative assistance needed in connection with the management of the programme .


### by derogation from article 198 of the financial regulation , the financial capacity shall be verified only for the coordinator and only if the requested funding from the union for the action is equal to or greater than eur 500 000 . ### by derogation from article 198 of the financial regulation , the financial capacity shall be verified only for the coordinator and only if the requested funding from the union for the action is equal to or greater than eur 250 000 .


### in case of weak financial capacity , the commission or funding body may make participation of the applicant conditional on provision of a declaration on joint and several liability by an affiliated entity . ### in case of weak financial capacity as stated on the basis of an analysis of any information or supporting documents referred to in article 196 of the financial regulation , the commission or funding body may make participation of the applicant conditional on provision of a declaration on joint and several liability by an affiliated entity .


### by derogation from article 203 of the financial regulation , a certificate on the financial statements shall be mandatory at payment of the balance , if the amount claimed as actual costs and unit costs calculated in accordance with usual cost accounting practices is equal to or greater than eur 325 000 . ### by derogation from article 203 of the financial regulation , a certificate produced by an approved external auditor or , in the case of public bodies , by a competent and independent public officer , on the financial statements shall be mandatory only whenever the cumulative amount of interim and balance payments made to a participant equal to eur 325 . 000 or more .


### eic blended finance shall be implemented in accordance with article 43 . the support under the eic blended finance may be granted until the action can be financed as a blending operation or as a financing and investment operation fully covered by the eu guarantee under investeu . by derogation from article 209 of the financial regulation , the conditions laid down in paragraph and , in particular , paragraph and , do not apply at the time of the award of eic blended finance ### eic blended finance shall be implemented in accordance with article 43 . the support under the eic blended finance may be granted until the action can be financed as a blending operation or as a financing and investment operation fully covered by the eu guarantee under investeu .


### by derogation from article 237 of the financial regulation , external experts may be selected without a call for expressions of interest , if justified and the selection is carried out in a transparent manner . ### by derogation from article 237 of the financial regulation , external experts may be selected without a call for expressions of interest , if deemed appropriate and in duly justified cases , and if the selection is carried out in a transparent manner .


### in accordance with article 237 and 237 of the financial regulation , external experts shall be remunerated based on standard conditions . if justified , an appropriate level of remuneration beyond the standard conditions based on relevant market standards , especially for specific high level experts , may be granted . ### in accordance with article 237 and 237 of the financial regulation , external experts shall be remunerated based on standard conditions . in duly justified cases , an appropriate level of remuneration beyond the standard conditions based on relevant market standards , especially for specific high level experts , may be granted .


### the interim evaluation of the programme shall be carried out once there is sufficient information available about the implementation of the programme , but no later than four years after the start of the programme implementation . it shall include an assessment of the long - term impact of previous framework programmes and shall form the basis to adjust programme implementation , as appropriate . ### the interim evaluation of the programme shall be carried out once there is sufficient information available about the implementation of the programme and the result of the evaluation should be made available no later than four years after the start of the programme implementation . it shall include an assessment of the long - term impact of previous framework programmes and shall form the basis to adjust programme implementation , as appropriate .


### the control system for the programme shall ensure an appropriate balance between trust and control , taking into account administrative and other costs of controls at all levels , especially for beneficiaries . ### the control system for the programme shall ensure an appropriate balance between trust and control , taking into account administrative and other costs of controls at all levels , especially for beneficiaries . audits shall be carried in conformity with the internal audit standards and the general principles of law .


### in accordance with article 127 of the financial regulation , the commission or funding body may rely on audits on the use of union contributions carried out by other persons or entities , including by other than those mandated by the union institutions or bodies . ### in accordance with article 127 of the financial regulation , the commission or funding body may rely on audits on the use of union contributions carried out by other persons or entities , including by other than those mandated by the union institutions or bodies providing that those audits are based on internationally accepted audits standards and that they have been conducted by an independent auditor .


### the european union agency for asylum should gather and analyse information on the situation of asylum in the union and in third countries insofar as this may have an impact on the union . that should enable the agency to assist member states in better understanding the factors for asylum - related migration towards and within the union , as well as for the purpose of early warning and preparedness of member states . ### the european union agency for asylum should gather and analyse information on the situation of asylum in the union , in third countries and in transit countries insofar as this may have an impact on the union . that should enable the agency to assist member states in better understanding the factors for asylum - related migration towards and within the union , as well as for the purpose of early warning and preparedness of member states .


### the european union agency for asylum should ensure a more structured and streamlined production of information on countries of origin at the level of the european union . it is necessary for the agency to gather information and draw up reports providing for country of origin information by making use of european networks on country of origin information so as to avoid duplication and create synergies with national reports . furthermore , to ensure convergence in the assessment of applications for international protection and the nature and quality of protection granted , the agency should , together with member states , engage in and develop a common analysis providing guidance on the situation in specific countries of origin . ### the european union agency for asylum should ensure a more structured and streamlined production of information on countries of origin and transit at the level of the european union . it is necessary for the agency to gather information and draw up reports providing for country of origin and transit information by making use of european networks on country of origin information so as to avoid duplication and create synergies with national reports . furthermore , to ensure convergence in the assessment of applications for international protection and the nature and quality of protection granted , the agency should , together with member states , engage in and develop a common analysis providing guidance on the situation in specific countries of origin .


### the common eu list of safe countries of origin established by regulation no xxx / xxx 9 should be regularly reviewed by the commission . having regard to the agency ' s expertise , it should assist the commission in reviewing that list . the agency should also , at the request of the commission , provide it with information on specific third countries which could be included in the common eu list of safe countries of origin , and on third countries designated as safe countries of origin or safe third countries or to which the concepts of safe third country , first country of asylum or european safe third country by member states apply . __________________ 9 oj l [ … ] ### the common eu list of safe countries of origin established by regulation no xxx / xxx 9 should be regularly reviewed by the commission , in cooperation with the eeas . having regard to the agency ' s expertise , it should assist the commission in reviewing that list . the agency should also , at the request of the commission , provide it with information on specific third countries which could be included in the common eu list of safe countries of origin , and on third countries designated as safe countries of origin or safe third countries or to which the concepts of safe third country , first country of asylum or european safe third country by member states apply . those countries with which the eu has concluded , or is in the process of concluding a ' migration compact ' under the partnership framework with third countries under the european agenda for migration , will not be automatically considered as safe , but will be assessed following the procedure set out herein . __________________ 9 oj l [ &#8230 ; ]


### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union . all activities of the european union agency for asylum shall be carried out in full respect of these fundamental rights and principles , including the right to asylum , the protection from refoulement , the right to respect for private and family life , the right to protection of personal data and the right to an effective remedy . the rights of the child and the special needs of vulnerable persons shall always being taken into account . ### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union and the 1951 geneva convention . all activities of the european union agency for asylum shall be carried out in full respect of these fundamental rights and principles , including the right to asylum , the protection from refoulement , the right to respect for private and family life , the right to protection of personal data and the right to an effective remedy . the rights of the child and the special needs of vulnerable persons , in particular women and lgbti people shall always being taken into account .


### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union . all activities of the european union agency for asylum shall be carried out in full respect of these fundamental rights and principles , including the right to asylum , the protection from refoulement , the right to respect for private and family life , the right to protection of personal data and the right to an effective remedy . the rights of the child and the special needs of vulnerable persons shall always being taken into account . ### this regulation respects fundamental rights and observes the principles recognised in particular by the charter of fundamental rights of the european union . all activities of the european union agency for asylum shall be carried out in full respect of these fundamental rights and principles , including the right to asylum , the protection from refoulement , the right to respect for private and family life , the right to protection of personal data and the right to an effective remedy . the rights of the child , the constant follow up on unaccompanied minors and the special needs of vulnerable persons shall be a priority .


### the agency shall be a centre for gathering relevant , reliable , accurate and up - to date information on countries of origin of persons applying for international protection , including child - specific information and targeted information on persons belonging to vulnerable groups . it shall draw up and regularly update reports and other products providing for information on countries of origin at the level of the union including on thematic issues specific to countries of origin . ### the agency shall be a centre for gathering relevant , reliable , accurate and up - to date information on countries of origin of persons applying for international protection , including child - specific information and targeted information on persons belonging to vulnerable groups , specifically women and lgbti people . it shall draw up and regularly update reports and other products providing for information on countries of origin at the level of the union including on thematic issues , and including those principles in article 21 of the treaty of the european union , specific to countries of origin .


### the agency shall assist the commission in regularly reviewing the situation in third countries which are included in the common eu list of safe countries of origin established by regulation no xxx / xxx , including those that have been suspended by the commission and those that have been removed from that list . ### the agency shall assist the commission in regularly reviewing the situation in third countries which are included in the common eu list of safe countries of origin established by regulation no xxx / xxx , including those countries with which the eu has , or is in the process of concluding , a ' compact ' under the partnership framework , as well as countries that have been suspended by the commission and those that have been removed from that list .


### in matters related to its activities and , to the extent required for the fulfilment of its tasks , the agency shall facilitate and encourage operational cooperation between member states and third countries , within the framework of the union ' s external relations policy , including with regard to the protection of fundamental rights , and in cooperation with the european external action service . the agency and the member states shall promote and comply with norms and standards equivalent to those set by union legislation , including when carrying out activities on the territory of those third countries . ### in matters related to its activities and , to the extent required for the fulfilment of its tasks , the agency shall facilitate and encourage operational cooperation between member states and third countries , within the framework of the union ' s external relations policy , including with regard to the protection of fundamental rights , and in cooperation with the european external action service . the agency and the member states shall promote and comply with norms and standards equivalent to those set by union legislation and international law , including when carrying out activities on the territory of those third countries .


### the content of electronic communications may reveal highly sensitive information about the natural persons involved in the communication , from personal experiences and emotions to medical conditions , sexual preferences and political views , the disclosure of which could result in personal and social harm , economic loss or embarrassment . similarly , metadata derived from electronic communications may also reveal very sensitive and personal information . these metadata includes the numbers called , the websites visited , geographical location , the time , date and duration when an individual made a call etc . , allowing precise conclusions to be drawn regarding the private lives of the persons involved in the electronic communication , such as their social relationships , their habits and activities of everyday life , their interests , tastes etc . ### the content of electronic communications may reveal highly sensitive information about the natural persons involved in the communication , from personal experiences and emotions to medical conditions , sexual preferences and political views , the disclosure of which could result in personal and social harm , economic loss or embarrassment . similarly , metadata derived from electronic communications may also reveal very sensitive and personal information . these metadata includes the numbers called , the websites visited , geographical location , the time , date and duration when an individual made a call etc . , allowing precise conclusions to be drawn regarding the private lives of the persons involved in the electronic communication , such as their social relationships , their habits and activities of everyday life , their interests , tastes etc . the protection of confidentiality of communications is one of the essential conditions for respect for fundamental rights and freedoms , along with the freedoms of conscience , religion and expression .


### while the principles and main provisions of directive 2002 / 58 / ec of the european parliament and of the council22 remain generally sound , that directive has not fully kept pace with the evolution of technological and market reality , resulting in an inconsistent or insufficient effective protection of privacy and confidentiality in relation to electronic communications . those developments include the entrance on the market of electronic communications services that from a consumer perspective are substitutable to traditional services , but do not have to comply with the same set of rules . another development concerns new techniques that allow for tracking of online behaviour of end - users , which are not covered by directive 2002 / 58 / ec . directive 2002 / 58 / ec should therefore be repealed and replaced by this regulation . __________________ 22 directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector . ### while the principles and main provisions of directive 2002 / 58 / ec of the european parliament and of the council22 remain generally sound , that directive has not fully kept pace with the evolution of technological and market reality , resulting in an inconsistent or insufficient protection of privacy and confidentiality in relation to electronic communications . those developments include the entrance on the market of electronic communications services that from a consumer perspective are substitutable to traditional services , but do not have to comply with the same set of rules . another development concerns new techniques that allow for tracking of online behaviour of end - users , which are not covered by directive 2002 / 58 / ec . directive 2002 / 58 / ec should therefore be repealed and replaced by this regulation . __________________ 22 directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector .


### the principles of data protection by design and by default were codified under article 25 of regulation 2016 / 679 . currently , the default settings for cookies are set in most current browsers to ‘ accept all cookies’ . therefore providers of software enabling the retrieval and presentation of information on the internet should have an obligation to configure the software so that it offers the option to prevent third parties from storing information on the terminal equipment ; this is often presented as ‘ reject third party cookies’ . end - users should be offered a set of privacy setting options , ranging from higher to lower and intermediate . such privacy settings should be presented in a an easily visible and intelligible manner . ### the principles of data protection by design and by default were codified under article 25 of regulation 2016 / 679 . currently , the default settings for cookies are set in most current browsers to ‘ accept all cookies’ . therefore providers of software enabling the retrieval and presentation of information on the internet should have an obligation to configure the software so that it offers the option to prevent third parties from storing information on the terminal equipment ; this is often presented as ‘ reject third party cookies’ . end - users should be offered a set of privacy setting options , ranging from higher to lower and intermediate . such privacy settings should differentiate between the cookies of third parties having a contractual relationship with the website providers and other third - party cookies . such privacy settings should be presented in an easily visible and intelligible manner .


### in order to strengthen the enforcement of the rules of this regulation , each supervisory authority should have the power to impose penalties including administrative fines for any infringement of this regulation , in addition to , or instead of any other appropriate measures pursuant to this regulation . this regulation should indicate infringements and the upper limit and criteria for setting the related administrative fines , which should be determined by the competent supervisory authority in each individual case , taking into account all relevant circumstances of the specific situation , with due regard in particular to the nature , gravity and duration of the infringement and of its consequences and the measures taken to ensure compliance with the obligations under this regulation and to prevent or mitigate the consequences of the infringement . for the purpose of setting a fine under this regulation , an undertaking should be understood to be an undertaking in accordance with articles 101 and 102 of the treaty . ### in order to strengthen the enforcement of the rules of this regulation , each supervisory authority should have the power to impose penalties including administrative fines for any infringement of this regulation , in addition to , or instead of any other appropriate measures pursuant to this regulation . this regulation should indicate infringements and the upper limit and criteria for setting the related administrative fines , which should be determined by the competent supervisory authority in each individual case , taking into account all relevant circumstances of the specific situation , with due regard in particular to the nature , gravity and duration of the infringement and of its consequences and the measures taken to ensure compliance with the obligations under this regulation and to prevent or mitigate the consequences of the infringement . for the purpose of setting a fine under this regulation , an undertaking should be understood to be an undertaking in accordance with articles 101 and 102 of the treaty . it should not be permitted to impose double penalties resulting from the violation of both regulation 2016 / 279 and this regulation .


### without prejudice to point of article 6 and points and of article 6 , the provider of the electronic communications service shall erase electronic communications metadata or make that data anonymous when it is no longer needed for the purpose of the transmission of a communication . ### without prejudice to point of article 6 and points and of article 6 , the provider of the electronic communications service shall erase electronic communications metadata when it is no longer needed for the purpose of the transmission of a communication .


### it is necessary for the sole purpose of carrying out the transmission of an electronic communication over an electronic communications network ; or ### it is necessary for the sole purpose of carrying out the transmission of an electronic communication over an electronic communications network whereby the data shall be stored in a binary format ; or


### the definition of and conditions for consent provided for under articles 4 and 7 of regulation 2016 / 679 / eu shall apply . ### the definition of and conditions for consent provided for under articles 4 and 7 , and of regulation 2016 / 679 / eu shall apply .


### the providers of publicly available directories shall obtain the consent of end - users who are natural persons to include their personal data in the directory and , consequently , shall obtain consent from these end - users for inclusion of data per category of personal data , to the extent that such data are relevant for the purpose of the directory as determined by the provider of the directory . providers shall give end - users who are natural persons the means to verify , correct and delete such data . ### the providers of publicly available directories shall obtain prior consent of end - users who are natural persons to include their personal data in the directory to organize personal data per categories , to the extent that such data are relevant for the purpose of the directory . providers shall give end - users who are natural persons the means to verify , correct and delete such data or to withdraw their consent at any time .


### the providers of publicly available directories shall obtain the consent of end - users who are natural persons to include their personal data in the directory and , consequently , shall obtain consent from these end - users for inclusion of data per category of personal data , to the extent that such data are relevant for the purpose of the directory as determined by the provider of the directory . providers shall give end - users who are natural persons the means to verify , correct and delete such data . ### the operators of electronic information , communications and telecommunications services shall collect the data of end - users who are natural persons to include their personal data in publicly accessible directories . they shall give end - users who are natural persons the right to object to data related to them being included in directories . operators shall give end - users who are natural persons the possibility to verify , correct and delete such data .


### where a natural or legal person obtains electronic contact details for electronic mail from its customer , in the context of the sale of a product or a service , in accordance with regulation 2016 / 679 , that natural or legal person may use these electronic contact details for direct marketing of its own similar products or services only if customers are clearly and distinctly given the opportunity to object , free of charge and in an easy manner , to such use . the right to object shall be given at the time of collection and each time a message is sent . ### where a natural or legal person obtains electronic contact details for electronic mail from its customer , in the context of the sale of a product or a service , in accordance with regulation 2016 / 679 , these electronic contact details may be used for direct marketing of similar products or services if customers are clearly and distinctly given the opportunity to object , free of charge and in an easy manner , to such use . the right to object shall be given at the time of collection and each time a message is sent .


### where a natural or legal person obtains electronic contact details for electronic mail from its customer , in the context of the sale of a product or a service , in accordance with regulation 2016 / 679 , that natural or legal person may use these electronic contact details for direct marketing of its own similar products or services only if customers are clearly and distinctly given the opportunity to object , free of charge and in an easy manner , to such use . the right to object shall be given at the time of collection and each time a message is sent . ### where a natural or legal person obtains electronic contact details for electronic mail from its customer , in the context of the sale of a product or a service , in accordance with regulation 2016 / 679 , that natural or legal person may only use these electronic contact details for direct marketing of its own similar products or services and only if customers are clearly and distinctly given the opportunity to object , free of charge and in an easy manner , to such use . the right to object shall be given at the time of collection and each time a message is sent .


### the power to adopt delegated acts referred to in article 8 shall be conferred on the commission for an indeterminate period of time from [ the data of entering into force of this regulation ] . ### the power to adopt delegated acts referred to in article 8 shall be conferred on the commission for 5 years from [ the date of entering into force of this regulation ] .


### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions . the risks faced and posed by investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union . ### many of the requirements that stem from regulation no 575 / 2013 and directive 2013 / 36 / eu framework are designed to address common risks faced by credit institutions . accordingly , the existing requirements are largely calibrated to preserve the lending capacity of credit institutions through economic cycles and to protect depositors and taxpayers from possible failure , and are not designed to address the different risk - profiles of investment firms . investment firms do not have large portfolios of retail and corporate loans and do not take deposits . the likelihood that their failure can have detrimental impacts for overall financial stability is lower than in the case of credit institutions . the risks faced and posed by some investment firms are thus substantially different to the risks faced and posed by credit institutions and such difference should be clearly reflected in the prudential framework of the union .


### there may be member states in which the authorities competent for the prudential supervision of investment firms are different from the authorities that are competent for the supervision of market conduct . it is therefore necessary to create a mechanism of cooperation and exchange of information between those authorities . ### there may be member states in which the authorities competent for the prudential supervision of investment firms are different from the authorities that are competent for the supervision of market conduct . it is therefore necessary to create a mechanism to ensure cooperation and exchange of information between those authorities .


### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency , lies with the competent authority of its home member state . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation with the competent authorities of these member states should be ensured . ### the proper functioning of the internal market requires that the responsibility for supervising the financial soundness of an investment firm , and in particular its solvency and its financial soundness , lies with the competent authority of its home member state or , in case the member state does not possess a competent authority with the characteristics laid down in this directive , with the competent authority that the member state should create for the purpose of this directive . to achieve an effective supervision of investment firms also in other member states where they provide services or have a branch , close cooperation with the competent authorities of these member states should be ensured .


### eba , in consultation with esma , shall issue guidelines on the application of sound remuneration policies . those guidelines shall take into account at least the requirements referred to in articles 28 to 31 and principles on sound remuneration policies set out in commission recommendation 2009 / 384 / ec43 . _________________ 43 commission recommendation 2009 / 384 / ec of 30 april 2009 on remuneration policies in the financial services sector . ### eba , in close cooperation with esma , shall issue guidelines on the application of sound remuneration policies . those guidelines shall take into account at least the requirements referred to in articles 28 to 31 and principles on sound remuneration policies set out in commission recommendation 2009 / 384 / ec43 . _________________ 43 commission recommendation 2009 / 384 / ec of 30 april 2009 on remuneration policies in the financial services sector .


### member states shall ensure that investment firms provide competent authorities , where requested , with information on the number of natural persons per investment firm that are remunerated eur 1 million or more per financial year , in pay brackets of eur 1 million , including information on their job responsibilities , the business area involved and the main elements of salary , bonus , long - term award and pension contribution . competent authorities shall forward that information to eba , which shall publish it on an aggregate home member state basis in a common reporting format . eba , in consultation with esma , may elaborate guidelines to facilitate the implementation of this paragraph and to ensure the consistency of the information collected . ### member states shall ensure that investment firms provide competent authorities , where requested , with information on the number of natural persons per investment firm that are remunerated eur 1 million or more per financial year , in pay brackets of eur 1 million , including information on their job responsibilities , the business area involved and the main elements of salary , bonus , long - term award and pension contribution . competent authorities shall forward that information to eba , which shall publish it on an aggregate home member state basis in a common reporting format . eba , in close cooperation with esma , may elaborate guidelines to facilitate the implementation of this paragraph and to ensure the consistency of the information collected .


### member states shall take the necessary measures to ensure that soliciting another person to commit one of the offences listed in points to of article 3 , or in article 4 is punishable as a criminal offence when committed intentionally . ### member states shall take the necessary measures to ensure that soliciting another person to commit or contribute to the commission of one of the offences listed in points to of article 3 , or in article 4 is punishable as a criminal offence when committed intentionally .


### member states shall take the necessary measures to ensure that to receive instruction , from another person in the making or use of explosives , firearms or other weapons or noxious or hazardous substances , or in other specific methods or techniques , for the purpose of committing of or contributing to the commission of one of the offences listed in points to of article 3 is punishable as a criminal offence when committed intentionally . ### member states shall take the necessary measures to ensure that to wilfully receive instruction , from another person , including on obtaining knowledge or practical skills , in the making or use of explosives , firearms or other weapons or noxious or hazardous substances , or in other specific methods or techniques , with the intent to commit or to contribute to the commission of one of the offences listed in points to of article 3 is punishable as a criminal offence


### member states shall take the necessary measures to ensure that providing or collecting funds , by any means , directly or indirectly , with the intent that they should be used , or knowing that they are to be used , in full or in part , to commit any of the offence referred to in articles 3 to 10 and 12 to 14 or 16 is punishable as a criminal offence when committed intentionally . ### member states shall take the necessary measures to ensure that any person providing or collecting funds , by any means , directly or indirectly , with the intention that they be used , or knowing that they are to be used , in full or in part , to commit any of the offence referred to in articles 3 to 10 and 12 to 14 is punishable as a criminal offence when committed intentionally .


### when an offence falls within the jurisdiction of more than one member state and when any of the states concerned can validly prosecute on the basis of the same facts , the member states concerned shall cooperate in order to decide which of them will prosecute the offenders with the aim , if possible , of centralising proceedings in a single member state . to this end , the member states may have recourse to eurojust in order to facilitate cooperation between their judicial authorities and the coordination of their action . sequential account shall be taken of the following factors : ### when an offence falls within the jurisdiction of more than one member state and when any of the states concerned can validly prosecute on the basis of the same facts , the member states concerned shall cooperate in order to decide which of them will prosecute the offenders with the aim , if possible , of centralising proceedings in a single member state . to this end , the member states shall have recourse to eurojust in order to facilitate cooperation between their judicial authorities and the coordination of their action . sequential account shall be taken of the following factors :


### member states shall ensure that specific services to assist and support victims of terrorism are in place . such services shall have the capacity and organisational structure necessary to provide assistance and support to these victims immediately after an attack and as long as necessary thereafter , in accordance with the specific needs of each victim . the services shall be confidential , free of charge and easily accessible to all victims of terrorism . they shall include in particular : ### a european office to help victims of terrorism shall be created , with enough human and economic resources , to help member states to ensure that specific services to assist and support victims of terrorism are in place . such services shall have the capacity and organisational structure necessary to provide assistance and support to these victims immediately after an attack and as long as necessary thereafter , in accordance with the specific needs of each victim . the services shall be confidential , free of charge and easily accessible to all victims of terrorism . they shall include in particular :


### the commission shall , by [ 48 months after the deadline for implementation of this directive ] , submit a report to the european parliament and to the council , assessing the impact and added value of this directive on combating terrorism . the commission shall take into account the information provided by member states under decision 2005 / 671 / jha . ### the commission shall , by [ 48 months after the deadline for implementation of this directive ] , and every two years , submit a report to the european parliament and to the council , assessing the impact on fundamental rights , proportionality , the effectiveness and added value of this directive on combating terrorism . the commission shall take into account the information provided by member states under decision 2005 / 671 / jha .


### open innovation is an important lever for the creation of new knowledge and underpins the emergence of new and innovative business models based on the use of co - created knowledge . trade secrets have an important role in protecting the exchange of knowledge between businesses within and across the borders of the internal market in the context of research and development and innovation . collaborative research , including cross - border cooperation , is particularly important to increase the levels of business research and development within the internal market . open innovation is a catalyst for new ideas to find their way to the market meeting the needs of consumers and tackling societal challenges . in an internal market where barriers to such cross - border collaboration are minimised and where cooperation is not distorted , intellectual creation and innovation should encourage investment in innovative processes , services and products . such an environment conducive to intellectual creation and innovation is also important for employment growth and improving competitiveness of the union economy . trade secrets are amongst the most used form of protection of intellectual creation and innovative know - how by businesses , yet they are at the same time the least protected by the existing union legal framework against their unlawful acquisition , use or disclosure by third parties . ### open innovation is an important lever for the creation of new knowledge and underpins the emergence of new and innovative business models based on the use of co - created knowledge . trade secrets have an important role in protecting the exchange of knowledge between businesses and / or research institutions within and across the borders of the internal market in the context of research and development and innovation . collaborative research , including cross - border cooperation , is particularly important to increase the levels of business research and development within the internal market . open innovation is a catalyst for new ideas to find their way to the market meeting the needs of consumers and tackling societal challenges . in an internal market where barriers to such cross - border collaboration are minimised and where cooperation is not distorted , intellectual creation and innovation should encourage investment in innovative processes , services and products . such an environment conducive to intellectual creation and innovation is also important for employment growth and improving competitiveness of the union economy . trade secrets are amongst the most used form of protection of intellectual creation and innovative know - how by businesses , yet they are at the same time the least protected by the existing union legal framework against their unlawful acquisition , use or disclosure by third parties .


### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question . ### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question . it is also appropriate to define at union level the situations where the acquisition , use and disclosure of a trade secret is lawful and unlawful , and to limit the period of application of redress procedures , for the directive to serve its purpose of consistent protection of trade secrets in the union .


### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question . ### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . such confidential know - how should furthermore have commercial value , whether actual or potential , insofar as its unlawful acquisition , use or disclosure undermines the scientific and technical potential , business or financial interests , strategic positions or ability to compete of the trade secret holder . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question .


### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product . ### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product , as long as this is in line with honest commercial practices .


### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers . ### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for all relevant circumstances resulting in the use or disclosure of the trade secret as well as the impact of such use or disclosure . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers .


### the smooth functioning of the internal market would be undermined if the measures and remedies provided for were used to pursue illegitimate intents incompatible with the objectives of this directive . therefore , it is important to ensure that judicial authorities are empowered to sanction abusive behaviour by claimants who act in bad faith and submit manifestly unfounded applications . it is also important that measures and remedies provided for should not restrict the freedom of expression and information or whistleblowing activity . therefore the protection of trade secrets should not extend to cases in which disclosure of a trade secret serves the public interest in so far as relevant misconduct or wrongdoing is revealed . ### the smooth functioning of the internal market would be undermined if the measures and remedies provided for were used to pursue illegitimate intents , such as creating unjustified barriers to the internal market or to labour mobility , that are incompatible with the objectives of this directive . therefore , it is important to ensure that judicial authorities are empowered to sanction abusive behaviour by claimants who act in bad faith and submit manifestly unfounded applications . it is also important that measures and remedies provided for should not restrict the freedom of expression and information or whistleblowing activity . therefore the protection of trade secrets should not extend to cases in which disclosure of a trade secret serves the public interest in so far as relevant misconduct or wrongdoing is revealed .


### in the interest of legal certainty and considering that legitimate trade secret holders are expected to exercise a duty of care as regards the preservation of the confidentiality of their valuable trade secrets and the monitoring of their use , it appears appropriate to restrict the possibility to initiate actions for the protection of trade secrets to a limited period following the date on which the trade secret holders became aware , or had reason to become aware , of the unlawful acquisition , use or disclosure of their trade secret by a third party . ### in the interest of preserving a smooth functioning of the internal market of research and innovation , of legal certainty and considering that legitimate trade secret holders are expected to exercise a duty of care as regards the preservation of the confidentiality of their valuable trade secrets and the monitoring of their use , it appears appropriate to restrict the possibility to initiate actions for the protection of trade secrets to a limited period following the date on which the trade secret holders became aware , or had reason to become aware , of the unlawful acquisition , use or disclosure of their trade secret by a third party .


### the prospect of losing the confidentiality of a trade secret during litigation procedures often deters legitimate trade secret holders from instituting proceedings to defend their trade secrets , thus jeopardising the effectiveness of the measures and remedies provided for . for this reason , it is necessary to establish , subject to appropriate safeguards ensuring the right to a fair trial , specific requirements aimed at protecting the confidentiality of the litigated trade secret in the course of legal proceedings instituted for its defence . these should include the possibility to restrict access to evidence or hearings , or to publish only the non - confidential elements of judicial decisions . such protection should remain in force after the legal proceedings have ended for as long as the information covered by the trade secret is not in the public domain . ### the prospect of losing the confidentiality of a trade secret during litigation procedures often deters legitimate trade secret holders from instituting proceedings to defend their trade secrets , thus jeopardising the effectiveness of the measures and remedies provided for . for this reason , it is necessary to establish , subject to appropriate safeguards ensuring the right to a fair trial , specific requirements aimed at protecting the confidentiality of the litigated trade secret in the course of legal proceedings instituted for its defence . these should include the possibility to restrict access to evidence or hearings , or to publish only the non - confidential elements of judicial decisions . to ensure a sufficient access to information , in cases where access is restricted , at least one person from each party and its respective lawyer should have access to evidence or hearings . such protection should remain in force after the legal proceedings have ended for as long as the information covered by the trade secret is not in the public domain .


### for the same reason , it is also important to provide for measures to prevent further unlawful use or disclosure of a trade secret . for prohibitory measures to be effective , their duration , when circumstances require a limitation in time , should be sufficient to eliminate any commercial advantage which the third party could have derived from the unlawful acquisition , use or disclosure of the trade secret . in any event , no measure of this type should be enforceable if the information originally covered by the trade secret is in the public domain for reasons that cannot be attributed to the respondent . ### for the same reason , it is also important to provide for measures to prevent further unlawful use or disclosure of a trade secret . for prohibitory measures to be effective , their duration should be sufficient to eliminate any commercial advantage which the third party could have derived from the unlawful acquisition , use or disclosure of the trade secret and should be limited in time to avoid the creation of unjustified barriers to competition in the internal market . in any event , no measure of this type should be enforceable if the information originally covered by the trade secret is in the public domain for reasons that cannot be attributed to the respondent .


### a trade secret may be unlawfully used to design , manufacture or market goods , or components thereof , which may spread across the internal market , thus affecting the commercial interests of the trade secret holder and the functioning of the internal market . in those cases and when the trade secret in question has a significant impact on the quality , value or price of the resulting good or on reducing the cost , facilitating or speeding up its manufacturing or marketing processes , it is important to empower judicial authorities to order appropriate measures with a view to ensure that those goods are not put on the market or are removed from it . considering the global nature of trade , it is also necessary that these measures include the prohibition of importing those goods into the union or storing them for the purposes of offering or placing them on the market . having regard to the principle of proportionality , corrective measures should not necessarily entail the destruction of the goods when other viable options are present , such as depriving the good of its infringing quality or the disposal of the goods outside the market , for example , by means of donations to by charitable organisations . ### a trade secret may be unlawfully used to design , manufacture , develop or market services or goods , or components thereof , which may spread across the internal market , thus affecting the commercial interests of the trade secret holder and the functioning of the internal market . in those cases and when the trade secret in question has a significant impact on the quality , value or price of the resulting good or on reducing the cost , facilitating or speeding up its manufacturing or marketing processes , it is important to empower judicial authorities to order appropriate measures with a view to ensure that those goods are not put on the market or are removed from it . considering the global nature of trade , it is also necessary that these measures include the prohibition of importing those goods into the union or storing them for the purposes of offering or placing them on the market . having regard to the principle of proportionality , corrective measures should not necessarily entail the destruction of the goods when other viable options are present , such as depriving the good of its infringing quality or the disposal of the goods outside the market , for example , by means of donations to by charitable organisations .


### in order to avoid that a person who knowingly , or with reasonable grounds for knowing , unlawfully acquires , uses or discloses a trade secret benefit from such conduct and to ensure that the injured trade secret holder , to the extent possible , is placed in the position in which he or she would have been had that conduct not taken place , it is necessary to provide for adequate compensation of the prejudice suffered as a result of the unlawful conduct . the amount of damages awarded to the injured holder of the trade secret should take account of all appropriate factors , such as loss of earnings incurred by the trade secret holder or unfair profits made by the infringer and , where appropriate , any moral prejudice caused to the trade secret holder . as an alternative , for example where , considering the intangible nature of trade secrets , it would be difficult to determine the amount of the actual prejudice suffered , the amount of the damages might be derived from elements such as the royalties or fees which would have been due had the infringer requested authorisation to use the trade secret in question . the aim is not to introduce an obligation to provide for punitive damages , but to ensure compensation based on an objective criterion while taking account of the expenses incurred by the holder of the trade secret , such as the costs of identification and research . ### in order to avoid that a person who knowingly , or with reasonable grounds for knowing , unlawfully acquires , uses or discloses a trade secret benefit from such conduct and to ensure that the injured trade secret holder , to the extent possible , is placed in the position in which he or she would have been had that conduct not taken place , it is necessary to provide for adequate compensation of the prejudice suffered as a result of the unlawful conduct . the amount of damages awarded to the injured holder of the trade secret should take account of all appropriate factors , such as loss of earnings incurred by the trade secret holder or unfair profits made by the infringer and , when the trade secret holder is a natural person , any moral prejudice caused to the trade secret holder . as an alternative , for example where , considering the intangible nature of trade secrets , it would be difficult to determine the amount of the actual prejudice suffered , the amount of the damages might be derived from elements such as the royalties or fees which would have been due had the infringer requested authorisation to use the trade secret in question . the aim is not to introduce an obligation to provide for punitive damages , but to ensure compensation based on an objective criterion while taking account of the expenses incurred by the holder of the trade secret , such as the costs of identification and research .


### to act as a supplementary deterrent to future infringers and to contribute to the awareness of the public at large , it is useful to publicise decisions , including where appropriate through prominent advertising , in cases concerning the unlawful acquisition , use or disclosure of trade secrets , as long as such publication does not result in the disclosure of the trade secret nor disproportionally affect the privacy and reputation of natural persons . ### to act as a supplementary deterrent to future infringers and to contribute to the awareness of the public at large , it is useful to publicise decisions , including where appropriate through prominent advertising , in cases concerning the unlawful acquisition , use or disclosure of trade secrets , as long as such publication does not result in the disclosure of the trade secret nor disproportionally affect the privacy and reputation of natural persons . there is also a necessity to raise awareness , especially for small and medium - sized businesses , of the availability of redress and remedies in cases of unlawful acquisition , use or disclosure of trade secrets .


### in order to facilitate the uniform application of the measures for the protection of trade secrets , it is appropriate to provide for systems of cooperation and the exchange of information as between member states , on the one hand , and between the member states and the commission on the other , in particular by creating a network of correspondents designated by member states . in addition , in order to review whether these measures fulfil their intended objective , the commission , assisted , as appropriate , by the european observatory on the infringements of intellectual property rights , should examine the application of this directive and the effectiveness of the national measures taken . ### in order to facilitate the uniform application of the measures for the protection of trade secrets , it is appropriate to use existing systems of cooperation and exchange of information between member states , on the one hand , and between the member states and the commission on the other . in addition , in order to review whether these measures fulfil their intended objective , the commission should examine the application of this directive and the effectiveness of the national measures taken .


### this directive should not affect the application of competition law rules , in particular articles 101 and 102 of the treaty on the functioning of the european union . the measures provided for in this directive should not be used to restrict competition unduly in a manner contrary to that treaty . ### this directive should not affect the application of competition law rules , in particular articles 101 and 102 of the treaty on the functioning of the european union . the measures provided for in this directive should not be used to unfairly restrict competition , delay access to the internal market , and create barriers to labour mobility in a manner contrary to that treaty .


### the conscious and deliberate production , offering or placing on the market of infringing goods , or import , export or storage of infringing goods for those purposes , shall be considered an unlawful use of a trade secret . ### the production , offering or placing on the market of infringing goods , or import , export or storage of infringing goods for those purposes , shall be considered an unlawful use of a trade secret , when the person carrying out such activities knew , or should , under the circumstances , have known that the trade secret was used unlawfully .


### the obligation referred to in the first subparagraph shall cease to exist in any of the following circumstances : ### the obligation referred to in the first subparagraph shall continue to apply until after the end of the legal proceedings , except in any of the following circumstances :


### member states shall ensure that in deciding on the granting or rejecting of the application and assessing its proportionality , the competent judicial authorities shall be required to take into account the value of the trade secret , the measures taken to protect the trade secret , the conduct of the respondent in acquiring , disclosing or using of the trade secret , the impact of the unlawful disclosure or use of the trade secret , the legitimate interests of the parties and the impact which the granting or rejection of the measures could have on the parties , the legitimate interests of third parties , the public interest and the safeguard of fundamental rights , including freedom of expression and information . ### member states shall ensure that in deciding on the granting or rejecting of the application and assessing its proportionality , the competent judicial authorities shall be required to take into account all relevant aspects of the case , such as the value of the trade secret , the measures taken to protect the trade secret , the intentional or unintentional conduct of the respondent in acquiring , disclosing or using of the trade secret , the impact of the unlawful disclosure or use of the trade secret , the legitimate interests of the parties and the impact which the granting or rejection of the measures could have on the parties , the legitimate interests of third parties , the public interest and the safeguard of fundamental rights , including freedom of expression and information .


### when the competent authorities limit the duration of the measure referred to in point of article 11 , such duration shall be sufficient to eliminate any commercial or economic advantage that the infringer could have derived from the unlawful acquisition , disclosure or use of the trade secret . ### member states shall ensure that the competent authorities limit the length of duration of the measure referred to in point of article 11 , accordingly , as to be sufficient to eliminate any commercial or economic advantage that the infringer could have derived from the unlawful acquisition , disclosure or use of the trade secret and as to avoid the creation of unjustified obstacles to fair competition , innovation and labour mobility .


### the person concerned originally acquired knowledge of the trade secret in good faith and fulfils the conditions of article 3 ; ### the person concerned at the moment of use or disclosure neither knew nor had reason , under the circumstances , to know that the trade secret was obtained from another person who was using or disclosing the trade secret unlawfully ;


### when setting the damages , the competent judicial authorities shall take into account all appropriate factors , such as the negative economic consequences , including lost profits , which the injured party has suffered , any unfair profits made by the infringer and , in appropriate cases , elements other than economic factors , such as the moral prejudice caused to the trade secret holder by the unlawful acquisition , use or disclosure of the trade secret . ### when setting the damages , the competent judicial authorities shall take into account all appropriate factors , such as the negative economic consequences , including lost profits , which the injured party has suffered , any unfair profits made by the infringer and , in appropriate cases , when the trade secret holder is a natural person , the moral prejudice caused to the trade secret holder by the unlawful acquisition , use or disclosure of the trade secret .


### when setting the damages , the competent judicial authorities shall take into account all appropriate factors , such as the negative economic consequences , including lost profits , which the injured party has suffered , any unfair profits made by the infringer and , in appropriate cases , elements other than economic factors , such as the moral prejudice caused to the trade secret holder by the unlawful acquisition , use or disclosure of the trade secret . ### when setting the damages , the competent judicial authorities shall take into account all relevant factors , such as the negative economic consequences , including lost profits , which the injured party has suffered , any unfair profits made by the infringer and , in appropriate cases , elements other than economic factors , such as the moral prejudice caused to the trade secret holder by the unlawful acquisition , use or disclosure of the trade secret .


### by xx xx 20xx [ three years after the end of the transposition period ] , the european union trade marks and designs agency , in the context of the activities of the european observatory on infringements of intellectual property rights , shall prepare an initial report on the litigation trends regarding the unlawful acquisition , use or disclosure of trade secrets pursuant to the application of this directive . ### by xx xx 20xx [ three years after the end of the transposition period ] , the european commission shall prepare an initial report on the litigation trends regarding the unlawful acquisition , use or disclosure of trade secrets pursuant to the application of this directive .


### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question . ### it is appropriate to provide for rules at union level to approximate the national legislative systems so as to ensure a sufficient and consistent level of redress across the internal market in case of unlawful acquisition , use or disclosure of a trade secret . for this purpose , it is important to establish a homogenous definition of a trade secret without restricting the subject matter to be protected against misappropriation . such definition should therefore be constructed as to cover business information , technological information and know - how where there is both a legitimate interest in keeping confidential and a legitimate expectation in the preservation of such confidentiality , including in the context of public and private contracts . the information or know - how should also have actual or potential commercial value . the information or know - how has commercial value , in particular , to the extent that its unlawful acquisition , use or disclosure is likely to cause harm to the person who legitimately controls it , by undermining their scientific and technological potential , economic or financial interests or their ability to withstand competition . by nature , such definition should exclude trivial information and should not extend to the knowledge and skills gained by employees in the normal course of their employment and which are known among or accessible to persons within the circles that normally deal with the kind of information in question


### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product . ### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . its provisions cannot be used for the sole purpose of restricting competition . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product .


### in the interest of innovation and to foster competition , the provisions of this directive should not create any exclusive right on the know - how or information protected as trade secrets . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product . ### in the interest of innovation and to foster competition , the provisions of this directive and its implementation should not create any exclusive right on the know - how or information protected as trade secrets . the provisions for protection of trade secrets conferred by this directive do not constitute an intellectual property right and it should not be possible for them to be invoked solely in order to restrict competition . thus , independent discovery of the same know - how and information remains possible and competitors of the trade secret holder are also free to reverse engineer any lawfully acquired product , as long as this is in line with honest commercial practices .


### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers . ### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation , in particular by having a deterrent effect against the unlawful acquisition , use and disclosure of a trade secret , without jeopardising fundamental rights and freedoms or the public interest , such as public safety , consumer protection , public health and environmental protection and without any prejudice to the mobility of workers . in this respect , the measures and remedies ensure that competent judicial authorities account for factors such as the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers .


### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers . ### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers . any measure that may directly or indirectly restrict sharing and use of knowledge and the hiring and mobility of labour , including the introduction of a uniform definition of trade secrets and the introduction and implementation of uniform rules for the protection of trade secrets within the internal market , should respect the principle of proportionality in the interest of innovation and free competition .


### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation without jeopardising other objectives and principles of public interest . in this respect , the measures and remedies ensure that competent judicial authorities account for the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such conduct . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers . ### in line with the principle of proportionality the measures and remedies intended to protect trade secrets should be tailored to meet the objective of a smooth functioning internal market for research and innovation , by having in particular a deterrent effect against the unlawful acquisition , use and disclosure of a trade secret , without jeopardising other objectives and principles of public interest , such as consumer protection , health and environment protection . in this respect , the measures and remedies ensure that competent judicial authorities account for all relevant circumstances such as the value of a trade secret , the seriousness of the conduct resulting in the unlawful acquisition , use or disclosure of the trade secret as well as the impact of such use or disclosure . it should also be ensured that the competent judicial authorities are provided with the discretion to weigh up the interests of the parties to the litigation , as well as the interests of third parties including , where appropriate , consumers .


### for the same reason , it is also important to provide for measures to prevent further unlawful use or disclosure of a trade secret . for prohibitory measures to be effective , their duration , when circumstances require a limitation in time , should be sufficient to eliminate any commercial advantage which the third party could have derived from the unlawful acquisition , use or disclosure of the trade secret . in any event , no measure of this type should be enforceable if the information originally covered by the trade secret is in the public domain for reasons that cannot be attributed to the respondent . ### for the same reason , it is also important to provide for measures to prevent further unlawful use or disclosure of a trade secret . for prohibitory measures to be effective and proportionate , their duration should be sufficient to eliminate any commercial advantage which the third party could have derived from the unlawful acquisition , use or disclosure of the trade secret , including when such a trade secret is used for the provision of services , and should be limited in time to avoid the creation of unjustified barriers to competition in the internal market . in any event , no measure of this type should be enforceable if the information originally covered by the trade secret is in the public domain for reasons that cannot be attributed to the respondent .