What kind of Trade Secrets Protection is promised in Brazil and Japan and how it is different from India ?
CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · December 2022
What kind of Trade Secrets Protection is promised in Brazil and Japan and how it is different from India ?
Answer & Explanation:
Trade secret law safeguards technological and commercial information that is not commonly recognized in the trade and prevents others from commercially exploiting it without authorization. A trade secret must contain secret information that no one else knows about, have commercial value, and reasonable measures must be taken to safeguard the secret. Trade Secret Protection in Brazil: Brazil revamped its intellectual property laws in 1996. Trade secrets are protected under the rubric of "unfair competition." Borrowing from U.S. law, a variant of the Section 757 (6-factor) test is used to determine whether a particular piece of information qualifies as a trade secret. Common knowledge, knowledge in the public domain, or knowledge that is apparent to an expert in the field cannot qualify for protection as trade secrets. The trade secret owner must take positive steps to safeguard the secrecy of the information. Remedies: The full panoply of relief is available, including compensatory damages, punitive damages, and injunctions. Criminal Sanctions: There are also criminal sanctions available against anyone who releases, exploits, or uses without authorization a trade secret to which he or she had access by virtue of a contractual or employment relationship. Trade Secret Protection in Japan: Effective June 15, 1991, Japan enacted a national trade secrets law. Trade secrets include any "technical or business" information that has commercial value, is not in the public domain, and which has been "administered" as a trade secret. Infringement occurs when a person procures a trade secret by theft, fraud, or extortion or when there is an unauthorized use or disclosure of a lawfully acquired trade secret for unfair competition. Remedies: An injured party may obtain injunctive relief and damages. The trade secret holder may also request destruction of any articles that have been manufactured as a result of the illegally obtained trade secret. The statute has similarities to the Uniform Trade Secrets Act. Statute of Limitations: There is a 3-year statute of limitations after discovery of the trade secret violation. Criminal Penalties: There are no criminal penalties in the statute. Trade Secret Protection in India and its Difference from Brazil and Japan: No Specific Legislation: Unlike Brazil and Japan, India does not have a standalone, comprehensive statute specifically dedicated to trade secret protection. Protection through Other Laws: Trade secrets in India are primarily protected through a combination of existing laws and legal principles: Contract Law: Non-Disclosure Agreements (NDAs) or Confidentiality Agreements (CAs) are the primary means of protection. These are enforced under the Indian Contract Act, 1872. Equity: Courts can grant injunctions based on equitable principles, even in the absence of a contract, as seen in cases like Richard Brady v. Chemical Process Equipment Pvt. Ltd. Copyright Act, 1957: Client information kept in databases can be considered copyrightable material, indirectly protecting it from disclosure. Information Technology Act, 2000: Sections 65 and 72 deal with tampering with computer source code and breach of confidentiality and privacy, respectively. Indian Penal Code (IPC): Sections 408 (criminal breach of trust) and 415 (cheating) can be invoked in cases of misappropriation. Competition Act, 2002: Section 3, while not directly protecting trade secrets, ensures that anti-competitive practices related to IP are curbed. Case Law Dependent: Protection largely relies on judicial precedents. Very few specific case laws directly define or extensively deal with trade secrets. Cases like American Express Bank Ltd. v. Ms. Priya Puri and Mr. Anil Gupta and Anr. v. Mr. KunalDasgupta and Ors have provided some definitions and interpretations. Lack of Criminal Sanctions: Unlike Brazil, India's framework does not have specific criminal penalties directly for trade secret misappropriation, although related offenses under IPC might apply. Japan also lacks specific criminal penalties for trade secret violations. Key Differences Summarized: Feature Brazil Japan India Specific Law Yes (under unfair competition) Yes (national trade secrets law) No (relies on other laws/contracts) Primary Protection Unfair Competition Law National Trade Secrets Law Contract Law (NDAs), Equity, other statutes Criminal Penalties Yes No Indirectly through IPC for related offenses Statute of Limitations Not specified, but remedies available 3-year after discovery Varies based on applicable law
Topics: Trade Secrets
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