The Secret Behind Trade Secrets
Keywords:
Trade secret, confidentiality, absence of legislation, advantage over competitors, economic growth, NDAAbstract
This paper analyzes the significance of trade secret protection in intellectual property rights (IPR) and examines the legal position of trade secrets in India and abroad. Trade secrets are vital assets for businesses and provide them with a competitive edge. This is highlighted by showing the change that trade secret protection can bring to MNCs in this age of global trade and commerce. This paper emphasizes the importance of trade secret protection and the challenges associated with safeguarding them. It analyzes the existing legal framework for trade secret protection in India and highlights the defences available for disclosing trade secrets, including general knowledge, parallel development, reverse engineering, and innocent acquisition of information. The paper suggests measures that
businesses can adopt to protect their trade secrets, such as non-disclosure agreements (NDA), awareness campaigns, compulsory registration, recognition by statute, validating reasonable noncompetition agreements, and changing the draft of Sections 12(4) and 13(3) of the proposed National Innovation Act. The paper recommends strengthening the legal framework for trade secret protection in India to prevent misappropriation and promote innovation and economic growth. Overall, the paper stresses the significance of trade secret protection and the need for an effective legal framework to protect the interests of businesses. It proposes suggestions that can enhance trade secret protection in India and promote a culture of innovation and growth. In short, the paper emphasizes the need for robust trade secret protection and a better understanding of the legal framework to
prevent trade secret misappropriation. I hope you consider my paper, as it will highlight the muchneeded awareness of trade secret recognition in India. The paper has been purposely written in easy and simple language for general understanding, even for non-legal readers, for whom this knowledge can be helpful (e.g., women running SMEs or household businesses).
References
Menell PS. Intellectual property: General Theories. In: Bouckaert B, de Geest G, editors. Encyclopedia of Law & Economics: Volume II. Cheltenham: Edward Elgar; 2000. p. 129–188.
Bone RG. A new look at trade secret law: Doctrine in search of justification. Cal L Rev. 2008; 86(1): 24.
Lin TCW. Executive trade secrets. Notre Dame Law Rev. 2013; 87(3): 911. SSRN 2047462. Available from: https://ssrn.com/abstract=2047462.
Intellectual Property Risk Management. Donal O'Connell. Independently published (December 19, 2021). https://www.amazon.com/Intellectual-Property-Management-Donal-OConnell/dp/B09NRD8CH6
Wilson Center. (2023). Chapter 2: America’s Trade Agreements. [online] Available at: https://www.wilsoncenter.org/chapter-2-americas-trade-agreements.
Wipo.int. (2024). India Accedes to the Paris Convention andthe Patent Cooperation Treaty (PCT). [Online] Available at: https://www.wipo.int/pressroom/en/prdocs/1998/wipo_upd_1998_32.html.
Wto.org. (2024). WTO | intellectual property (TRIPS)—agreement text—general provisions. [Online] Available at: https://www.wto.org/english/docs_e/legal_e/27-trips_03_e.htm
Wto.org. (2024). WTO | intellectual property (TRIPS)—agreement text—contents. [Online] Available at: https://www.wto.org/english/docs_e/legal_e/27-trips_01_e.htm.
Wto.org. (2024). WTO | intellectual property—overview of TRIPS Agreement. [Online] Available at: https://www.wto.org/english/tratop_e/trips_e/intel2_e.htm.
Approaches to the Protection of Trade Secrets. In: Enquiries into Intellectual Property’s Economic Impact. OECD; 2015. p. 131. https://one.oecd.org/document/DSTI/ICCP(2014) 17/CHAP1/FINAL/En/pdf
WIPO. (2012). WIPO Lex. [Online] Wipo.int. Available at: https://www.wipo.int/wipolex/ en/text/288514.
www.wipo.int (n.d.). Trade Secrets. [Online] Available at: https://www.wipo.int/export/sites/ www/sme/en/documents/pdf/ip_panorama_4_learning_points.pdf.
Oxford v. Moss, (1979) 68 Cri 482. Hammond RG. Theft of Information. Law Quarterly Review. 1984; 100: 252.
Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470, 490–91; 40 L. Ed. 2d 315 (1974).
Cornish WR. Intellectual Property. 3rd ed. 1996. Paras 8.49–8.53. Law Commission of England and Wales. Breach of Confidence. Consultation Paper No. 110. Her Majesty’s Stationery Office; 1981. Para 2.10.
Attorney General v. Guardian Newspapers. (1988) 3 All ER 545. Argus Partners. Protection of Confidential Information without a Contract. Protection of Confidential Information under Common Law—Rule of Equity. [Online] Available at: https://www.legal500.com/developments/thought-leadership/protection-of-confidential-information-without-a-contract/.
Saltman Engineering Co Ltd v Campbell Engineering Co Ltd. [1963] 3 All ER 413; 65 RPC 203.
Trade Secrets (Enforcement, etc.) Regulations, 2018, SI 2018/597. Trade Secrets (Enforcement, etc.) Regulations, 2018, SI 2018/597. Queensland Government. What are trade secrets, know-how and confidential information? [Online] Available at: https://www.business.qld.gov.au/running-business/risk/ip/ip-kit/browse-ip-topics/trade-secrets/definitions.
Verma SK. Legal Protection of Trade Secrets and Confidential Information. Journal of the Indian Law Institute. 2002; 44(3): 336–353.
The role of national and international intellectual property law and policy in reconceptualising the definition of investment. IIC - International Review of Intellectual Property and Competition Law. [Online] Available at: https://link.springer.com/article/10.1007/s40319-020-010097-.
Dionne v. Southeast Foam Converting & Packaging, Inc. 240 Va. 297, 397 S.E.2d 110, 1990 Va. LEXIS 121, 17 U.S.P.Q.2D (BNA) 1565 (Va. September 21, 1990).
American Express Bank, Ltd. v. Priya Puri. 2006 SCC Online Del 638.
Anil Gupta v. Kunal Dasgupta. 2002 SCC Online Del 250.
Niranjan Shankar Golikari v. Century Spg. and Mfg. Co. Ltd. (1967) 2 SCR 378.
Ambiance India Pvt. Ltd. v. Naveen Jain. 2005 SCC Online Del 367.
Rahman F. (2016). Trade secrets law and innovation policy in India. [Online] Available at: http://docs.manupatra.in/newsline/articles/Upload/E8134C85-E745-414C-91AA-3E05D6B95581.1-H__civil.pdf.
Dst.gov.in. (2020). Government of India, Department of Science & Technology. Draft 5th National Science, Technology, and Innovation Policy for public consultation. [Online] Available at: https://dst.gov.in/draft-5th-national-science-technology-and-innovation-policy-public-consultation.
Kamakhya Srivastava, Indian Innovation Act: Trade Secrets and Confidentiality, (March, 2015) http://ipfrontline.com/2008/10/indian-innovation-acttrade-secrets-and-confidentiality/.
Pollock, Mulla. Indian Contract and Specific Relief Acts. Vol 1. 12th ed. Edited by Nilima Bhadbade. New Delhi: Butterworths; 2004. pp. 818–822.
The Law Commission of India. 13th Report. Ministry of Law and Justice; 1958. Para 55.
SJ Advanced Technology & Mfg. Corp. v. Junkunc. 627 F. Supp. 572, 1986 U.S. Dist. LEXIS 29905, 1986-1 Trade Cas. (CCH) P66,970 (N.D. III. January 29, 1986).
Id
Id
Seetharaman R. Legal protection of trade secret. 1 Supreme Court Cases. 2004; 22.
Mason v Provident Clothing and Supply Co Ltd. [1913] AC 724, [1911-13] All ER Rep 400, 109 LT 449.
K Stanghton, L.J. in Lansing Linde Ltd. v. Kerr [1991] 1 All ER 418 at 425. Art. 39 of the TRIPS Agreement uses “undisclosed information” in this sense.
Kewanee v. Bicron. 416 U.S. 470, 94 S. Ct. 1879, 40 L. Ed. 2d 315, 1974 U.S. LEXIS 134, 181 U.S.P.Q. (BNA) 673, 69 Ohio Op. 2d 235 (U.S. May 13, 1974).
WIPO. Trade Secrets. Module 4. pg. 7. [Online] Available at: https://www.wipo.int/export/sites/ www/sme/en/documents/pdf/ip_panorama_4_learning_points.pdf.
Barr-Mullin, Inc. v. Browning. 424 S.E.2d 226 (1993).
Barr-Mullin, Inc. v. Browning. 108 N.C. App. 590.
Id.
Barr-Mullin, Inc. v. Browning. 424 S.E.2d 226 (1993).
Telerate Systems Inc v Caro. 689 F Supp 221, 232 (SDNY 1988).
Thomas Marshall v Gunile. (1978) 3 All ER 193, 203.
Minerals Resources v. Newcastle Newspapers Pvt Ltd. (1997) 40 IPR 403, ¶ 405.
Tractors and Farm Equipment Ltd. v. Green Field Farm Equipments Pvt. Ltd. 2006 SCC Online Mad 1236.
Indian Penal Code, 1860, §§ 405-409, § 418.
Information Technology Act, 2000, §§ 43 & 66.
Attwood v Lamont. (1920) 3 KB 571: (1920) All ER Rep 55.
DVD Copy Control Ass’n, Inc. v. Bunner. 116 Cal. App. 4th 241, 10 Cal. Rptr. 3d 185 (2004).
Initial Services v Putterill. (1968) 1 QB 396, 405: (1967) 3 All ER 145.
