The protection of trade secrets and undisclosed information is attracting a lot of attention throughout the world for obvious reasons. As the situation stands, trade secrets are not registerd like other intellectual prop
CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · June 2021
The protection of trade secrets and undisclosed information is attracting a lot of attention throughout the world for obvious reasons. As the situation stands, trade secrets are not registerd like other intellectual property rights and are also not creatures of statutes. The judicial system of each country determines the requirements for ensuring trade secrets protection. A survey conducted by the American Society for Industrial Security (ASIS) on intellectual property loss by Fortune 1000 compaies and the 300 fastest growing companies in the US reveals that $44 billion were lost due to known and suspected intellectual property losses during a 17-month period in 1996-1997. And the sum of $44 billion was calculated on the basis of the response of only 12% of the survey participants. At the interational level, Trade Related Aspects of Intellectual Property Systems (TRIPS) Agreement protects trade secrets in the from of undisclosed information. In the right of the above, highlight : (i) The role of international institutions for the international protection of trade secrets.
Answer & Explanation:
Role of International Institutions for the International Protection of Trade Secrets: Trade secrets, unlike other intellectual property rights, are not subject to registration and are primarily protected through confidentiality agreements and common law principles. However, international institutions play a crucial role in harmonizing and strengthening their protection across borders, especially given the global nature of business and the significant economic value of undisclosed information. Key international institutions and agreements include: NAFTA (North American Free Trade Agreement): NAFTA (now replaced by USMCA) was one of the early agreements that explicitly mandated member countries to protect trade secrets from unauthorized acquisition, disclosure, or use. It required remedies such as injunctive relief and damages for trade secret misappropriation. For example, in response to NAFTA, Mexico amended its 1991 trade secrets law to allow private litigants to seek injunctive relief. GATT (General Agreement on Tariffs and Trade) / WTO (World Trade Organization): The Uruguay Round of GATT, concluded in 1994, led to the establishment of the WTO and the promulgation of various trade-related agreements, including the TRIPS Agreement. Under GATT principles, "undisclosed information" was to be protected against use by others without the owner's consent if such use was contrary to honest commercial practices. It also introduced third-party liability for misappropriation if third parties knew or were grossly negligent in not knowing that the information was obtained dishonestly. TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights): The TRIPS Agreement, under Article 39, makes it obligatory for member states of the WTO to ensure the protection of undisclosed information (trade secrets). It provides a uniform mechanism for international protection by defining what constitutes a trade secret: the information must be a secret (not generally known or readily accessible), have commercial value because it is secret, and be subject to reasonable steps by its owner to keep it secret. TRIPS also requires member countries to provide effective remedies for trade secret misappropriation, including injunctive relief, damages, and provisional relief to prevent infringement and preserve evidence. These international frameworks, particularly TRIPS, have been instrumental in establishing a baseline for trade secret protection globally, compelling member countries to adopt or strengthen their national laws to safeguard this vital form of intellectual property.
Topics: Trade Secrets
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