Trade Secrets Law in India
Here’s an overview of Trade Secrets law in India:
🇮🇳 1. Legal Framework
India does not have a specific statute exclusively for trade secrets.
Trade secrets are primarily protected under:
Common law principles of contract and equity.
Indian Contract Act, 1872 — through confidentiality agreements, NDAs.
The Indian Penal Code (IPC) — for criminal breach of trust, theft, or criminal misappropriation.
The Information Technology Act, 2000 — for protection against unauthorized access to electronic data.
The Competition Act, 2002 — prevents unfair trade practices and unfair competition.
Courts rely on principles of breach of confidence and unfair competition.
2. Definition and Scope
Trade secrets include any confidential business information such as formulas, practices, processes, designs, instruments, or compilations of information.
The information must:
Have economic value because it is not publicly known.
Be subject to reasonable efforts to keep it confidential.
3. Protection Mechanisms
Protection is mainly through:
Contractual agreements (NDAs, confidentiality clauses).
Legal remedies under breach of confidence and unfair competition.
No registration system exists for trade secrets.
Protection extends to technical know-how, software code, business plans, customer lists, etc.
4. Enforcement and Remedies
Remedies available include:
Injunctions to prevent disclosure or use.
Damages or account of profits.
Criminal prosecution for theft or breach of confidentiality.
Courts have increasingly recognized trade secrets as valuable IP.
5. International Context
India is a member of the World Trade Organization (WTO) and complies with the TRIPS Agreement provisions on trade secrets.
India’s approach aligns with international best practices, though it lacks dedicated legislation.
Summary Table
| Aspect | India |
|---|---|
| Dedicated Trade Secrets Law | ❌ No standalone statute |
| Protection Basis | Contract law, breach of confidence, unfair competition |
| Definition | Confidential business information with economic value |
| Protection Mechanisms | NDAs, breach of confidence, unfair competition |
| Enforcement | Injunctions, damages, criminal remedies |
| International Obligations | TRIPS Agreement (WTO member) |
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