What are the cases and the legislations you can quote that will justify that trade secrets are protected in India? Elucidate.
CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · December 2019
What are the cases and the legislations you can quote that will justify that trade secrets are protected in India? Elucidate.
Answer & Explanation:
Trade secrets, just as other intellectual property rights, can be extremely valuable to a company's growth and sometimes even critical for its survival. Businesses must ensure that they adequately protect their business processes, technical know-how and confidential information from competitors. A trade secret may refer to a practice, process, design, instrument or a compilation of data or information relating to the business which is not generally known to the public and which the owner reasonably attempts to keep secret and confidential. Such data or information may also involve an economic interest of the owner in obtaining an economic advantage over competitors. The precise language by which a trade secret is defined may differ, however there are three factors, which can be said to be common to all such definitions. They are - It must not be generally known or readily accessible by people who normally deal with such type of information. It must have commercial value as a secret. The lawful owner must take reasonable efforts to maintain its secrecy. But the Indian Courts have tried putting the trade secrets of various businesses under the purview of various other legislations in order to protect them and also they have tried to define what a trade secret is in various cases, some of them are as follows:- American Express Bank Ltd. v. Ms. Priya Puri (2006) III LLJ 540(Del) Delhi High Court , in this case defined trade secrets as "... formulae, technical know-how or a peculiar mode or method of business adopted by an employer which is unknown to others." Michael Heath Nathan Johnson v. Subhash Chandra And Ors (60(1995) DLT 757) and John Richard Brady And Ors v. Chemical Process Equipments P. Ltd. And Anr (AIR 1987 Delhi 372) took note of the contentions of the counsels who referred to English decisions to define trade secrets Mr. Anil Gupta and Anr. v. Mr. Kunal Dasgupta and Ors [97 (2002) DLT 257] the Delhi High Court held that the concept developed and evolved by the plaintiff is the result of the work done by the plaintiff upon material which may be available for the use of anybody, but what makes it confidential is the fact that the plaintiff has used his brain and thus produced a result in the shape of a concept. The legislations which are having a connection with the trade secrets can be summed up as Copyright Act, 1957 [Section 51, 55 and 63] Designs Act, 2000 The Information Technology Act, 2000 [Section 65, 72] Indian Penal Code [Section 408, 415] The Indian Contract Act [Section 27] The Competition Act, 2002 [Section 3] Civil Procedure Code Criminal Procedure Code.
Topics: Trade Secrets
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