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17 May 2024
The 22nd Law Commission of India is recommending special legislation for the protection of trade secrets. For this purpose, the 22nd Law Commission, which serves as an advisory body to the Ministry of Law and Justice, has prepared the Draft Protection of Trade Secrets Bill 2024. The Law Commission is tasked to review existing laws in India, make reforms and enact new legislation.
India has no legislation dedicated to the protection of trade secrets. Issues related to trade secrets are dealt with in accordance with equity and common law.
Composed of 14 chapters and 13 sections, the draft bill defines “trade secret” in line with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to which India is a signatory. Under Article 39 of the TRIPS Agreement, member states must protect trade secrets or undisclosed information.
The draft bill also focuses on the rights of trade secret holders, provides a definition of “misappropriation of trade secrets” and discusses the legal remedies that trade secret owners may resort to in case of misappropriation of their rights.
Ranjan Narula, Managing Partner, RNA, Gurugram
Other salient points of the draft bill are a provision on compulsory licensing in cases of national emergency and extreme urgency involving substantial public interest, such as health emergencies or national security matters, and a provision for confidentiality of legal proceedings, among others.
For Ranjan Narula, managing partner at RNA in Gurugram, the Draft Protection of Trade Secrets Bill 2024 is a very welcoming step.
“It will be interesting to see how soon the government lists this bill in the parliament for debate. It is important to have a ‘sui generis’ law for the protection of trade secrets considering technology and business are converging. As a result, the business wants to protect information, secret formulas and know-how that give them a competitive edge,” said Narula. “Further, all technological developments may not pass the rigour of inventive steps to be protected as patents. Therefore, the protection of trade secrets is gaining importance as businesses expand across different countries and trade becomes increasingly globalized.”
- Espie Angelica A. de Leon
