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8/13/2019 21856845 Trade Secret Protection in India
1/22
Trade Secret Protection In India
By,
Ms Vintee Mishra
Brain League IP Services
Copyright Brain league IP Services Pvt. Ltd. 2008
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Overview
MeaningAcquisition of InformationProtection of Trade Secret
Confidentiality Agreements
Business strategies
Enforcement
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MeaningBasics:
Trade = Competitive Advantage Potential to!enerate "evenues
Secret = Confidential Information #no$n to %e$&
All Pledged to Secrecy
Confidential Information = Business orTec'nical
Business = %inancial& Commercial or (egative
Tec'nical = Scientific
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Principles:
)*Information
"eadily +nascertaina,le +n-no$n ,y Proper Means
!enerally #no$n
Matters of common knowledge, library, public database,journals, patent information, hardware designs andsoftware applications available in market
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.* Independent Economic/alue
0etermined ,y cost of development&
,enefitsderived or May ,e derived
1* "easona,le Efforts
Security Measures& Agreements
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E2amples:
Pricing Information,Customer Lists,Business methods,Strategic plans,Marketing plan
Work productIdeas,Design,Drawing,Model,
Specification,Surface data,Notes,
Improements!
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cqu s on oInformation
Proper Means
"everse Engineering
Independent Creation
Pu,lic 3iterature
4,servance
3icense
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Misappropriation
Conduct $'ic' results in o,taining Trade secretInformation ,y Improper Means
ImproperMeans
T'eft
Bri,ery
Espionage
Misrepresentation
Breac' of Contract
Inducement to ,reac' a duty
(et$or- attac-s
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Secret
Identification of Information as Trade Secret
0eterminants:
/alue of Information to Company
5'o S'ould #no$
/alue and Access to Competitors 6Ease to Copy& 0uplicate etc*7
Measures Ta-en
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Precautions:
5ritten Protection Policies 8 Clarity& 9uantum of0isclosure& 5'om to
0isclose*
Information Security 8 Controlled 4nline Transactions& Pass$ordProtection& +SB Ports& Intranet& Anti /irus&%ire$alls*
P'ysical Security "ecord #eeping& 0oc-eting& 0ocumentation&
Mar-ing& Paper S'redding& 3ogs& /isitor;sPasses& Clean 0es- Policy*
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ConfidentialityAgreements
Employer 8 Employee/endorSupplier
Contractors& Su, ContractorsConsultants
Important Provisions0efine Confidential Information 8 Scope
Clarify E2clusions0efinite 4,ligationsTime 3imiturisdiction
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Business Strategies
)* Patents and Trade Secrets
Patents Trade secrets
egistration !es "o#vaila$ility Ti%e Consu%ing I%%ediate
Longevity 20 !ears "o Li%itPu$lic &isclosure !es "oProtection '(clusive Li%ited'n)orce%ent Power)ul Tool &i))icult
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C'oice ,et$een Patents and TradeSecrets on ,asis of 3egal and Business
Perspective
#eep Information initially as Secret
If Patenta,le& disclose only $'atena,les person s-illed in art to practicet'e invention
May -eep confidential till Pu,lication0ate
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2. Sale
Transfer by way of sale of entire business
Only
artial sale not possible
!. "icensing
#n combination with atent and Software
"icenses
$lear, %&plicit and $ontrolled 'isclosure
)
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'n)orce%ent
Statutes(
)o Trade Secret "aw in #ndia
$ontracts $onfidential arrangements between parties through
)on 'isclosure *greements and other $onfidential*greements
Specific +elief $laim specific performance or damages
*rbitration and $onciliation Most of the dispute settlement prescribed in contracts,
agreements or otherwise dealt through arbitration
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$opyrights latant or substantial copying
Torts
Misappropriation, Theft, %spionage, -nfair$ompetition
$riminal "aws
#ndian enal $ode, $ode of $riminal rocedure
#nformation Technology "aws
acking, Tampering with $omputer, $omputerSource or )etwork
C t 0 i i
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Court 0ecisions
)* Mundip'arma v 5oc-'ardt
3icense Agreement to sell p'armaceuticalpreparations $it' discretion to adoptsuc' pac-aging design as it t'in-sproper> contains copyrig'ted content$'ic' is confidential information
P'armaceutical Preparation and Product,ecame pu,lic information duringcurrency of Agreement
0ispute Arose
Section .? of Contract Act invo-ed torestrict rig'ts after termination oflicense
(o actual or potential damages s'o$ed
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Trade Secret Case ,et$een Competitors
Alp'amed incorporated ,y e2 employees of Arriva
Arriva used +nfair Competitive practices to destroy
Alp'amed;s ,usinessArriva stole Alp'amed;s Confidential documentsand
ot'er Trade Secrets ,y appointing secretdetectives and used t'em for t'eir ,usinessadvantage
Alp'amed couldn;t provide actual or potentialdamages
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EmployerEmployee "elations'ipMemorandum of +nderstanding signed provides(on
Competition ClausesConfidential Information not defined in t'eMemorandumEmployee resigns to oin anot'er companyEmployer files to get inunction on employee;s
oining
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+emedies
#njunction
'amages
Search and $ease Order
recautionary #mpoundment
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T'an- ou