Introduction
Every business has certain confidential information that they do not want to share with anyone for example manufacturing procedures etc. This confidential information is generally considered as trade secrets. This information plays a key role in the success of any business organization.
Trade secrets are also known as confidential information or proprietary information. Most information in an organization is protected by Intellectual Property rights but there is certain information that does not fall under IPR and it has to be protected under the name of a trade secret. TRIPs also gives protection to such undisclosed information and it also provides security against unauthorized disclosure[1].
Meaning of Trade Secret
It is difficult to define the word trade secret with the exact definition. Since such a secret depends mostly upon the kind of information, conditions, and the relation between the parties. The Uniform trade secret act of the US defines the term trade secret as all kinds of information whether scientific, business, technical, financial, economic, or engineering.
Trade secrets also include any information related to device, method, technique, pattern, program, compilation, and many more. The scope of this is much wider. Apart from this it also includes new policies, new trade plans accounting information, records of employees, etc. In the world of software, trade secrets would include source code, data file structure, computer program, etc.
Position of the United States of America
US trade secret law deals with the protection of trade secrets in the US. Apart from NAFTA (North American Free Trade Agreement) was established in 1992 between the US, Canada, and Mexico. NAFTA also deals with maintaining the secrecy of trade secrets. Member countries protect trade secrets against unauthorized access. Remedies in case of unauthorized access to trade secret includes damages and injunctive relief.
Position of India
In India, there is no specific legislation for securing trade secrets. In general, Indian courts follow the concept of the common law. However, the equitable and contractual remedy can be claimed under the Indian Contract Act, 1872[2].
National Innovation Bill, 2008 was proposed in 2008 to protect trade secrets but it was not passed. This bill also proposed the rights and duties of parties relating to trade secrets while entering into a contract. Even in the absence of a contract, this bill provides basic protection to trade secrets under section 8(3). It provides civil remedies in case of disclosure of secret information by an unauthorize person.
[1] Article 39
[2] Section 27
This blog is written by Riddhi Chadha, Fairfield Institute of Management & Technology.
Some of her Blogs-
- INTERNET BANKING SECURITY THREATS: Legal framework
- JURISDICTION ISSUES IN E-COMMERCE
- DOCTRINE OF LIS PENDENS
- Guardianship under Hindu and Muslim law
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