ABSTRACT
Trade Secret protection is very essential because it encourages innovations and promotes commercial ethics. It is also crucial for a company’s growth as it promotes fair competition in the market. Better protection of trade secrets will boost commercial transactions and this will increase foreign investment and trade. With an effective regime, innovations can be protected through trade secrets thereby lowering the patent litigations. Further, such a regime supports the fundamental right to privacy. In India, there is no effective legislation or regime for the protection of trade secrets, though Section 27 of the Contract Act provides civil remedies up to a certain limit.
The law relating to protection of trade secrets in the United States has existed for a long time. The enactment of the Defend Trade Secrets Act, 2016 with its stringent provisions and wide range of remedies for the protection of interests of the trade secrets holder reflects that trade secrets are considered to be of immense importance in the country. The EU has diverse laws in its member states and has taken steps in the form of the EU Trade secret directive to ensure uniformity of law in the member states.
India is still lacking in granting adequate protection to the rights which are conferred on trade secret holders. The common law remedies and remedies under contract law are not adequate to protect the rights which accrue to the holders of trade secrets. Positive steps must be taken to ensure protection to the holders of trade secrets.
Sheikh, Sajid and Sharma, Poorva, Analysis of Trade Secrets Protection Under the Indian Contract Act, 1872 (January 15, 2024) in 150 Years of the Indian Contract Act, 1872: Some Reflections (Kesava Rao and others eds) (2024).
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