21856845 Trade Secret Protection in India

Embed Size (px)

Citation preview

  • 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

  • 8/13/2019 21856845 Trade Secret Protection in India

    2/22

    Overview

    MeaningAcquisition of InformationProtection of Trade Secret

    Confidentiality Agreements

    Business strategies

    Enforcement

  • 8/13/2019 21856845 Trade Secret Protection in India

    3/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    4/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    5/22

    .* Independent Economic/alue

    0etermined ,y cost of development&

    ,enefitsderived or May ,e derived

    1* "easona,le Efforts

    Security Measures& Agreements

  • 8/13/2019 21856845 Trade Secret Protection in India

    6/22

    E2amples:

    Pricing Information,Customer Lists,Business methods,Strategic plans,Marketing plan

    Work productIdeas,Design,Drawing,Model,

    Specification,Surface data,Notes,

    Improements!

  • 8/13/2019 21856845 Trade Secret Protection in India

    7/22

    cqu s on oInformation

    Proper Means

    "everse Engineering

    Independent Creation

    Pu,lic 3iterature

    4,servance

    3icense

  • 8/13/2019 21856845 Trade Secret Protection in India

    8/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    9/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    10/22

    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*

  • 8/13/2019 21856845 Trade Secret Protection in India

    11/22

    ConfidentialityAgreements

    Employer 8 Employee/endorSupplier

    Contractors& Su, ContractorsConsultants

    Important Provisions0efine Confidential Information 8 Scope

    Clarify E2clusions0efinite 4,ligationsTime 3imiturisdiction

  • 8/13/2019 21856845 Trade Secret Protection in India

    12/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    13/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    14/22

    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

    )

  • 8/13/2019 21856845 Trade Secret Protection in India

    15/22

    '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

  • 8/13/2019 21856845 Trade Secret Protection in India

    16/22

    $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

  • 8/13/2019 21856845 Trade Secret Protection in India

    17/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    18/22

  • 8/13/2019 21856845 Trade Secret Protection in India

    19/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    20/22

    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

  • 8/13/2019 21856845 Trade Secret Protection in India

    21/22

    +emedies

    #njunction

    'amages

    Search and $ease Order

    recautionary #mpoundment

  • 8/13/2019 21856845 Trade Secret Protection in India

    22/22

    T'an- ou