A trade secret is a confidential piece of information about a company. The company has the potential to gain an economic advantage over its competitors.

The concept of trade secrets is similar to that of goodwill. Keeping a trade secret is the only requirement for qualifying as a trade secret.

There are many types of trade secrets, including designs, drawings, plans, data compilations, business strategies, marketing plans, R&D-related information, etc.

It is the owner’s responsibility to protect trade secrets against unauthorized disclosure and to maintain their secrecy. A violation of a trade secret may result in unfair competition or tort liability as well as criminal penalties.

Trade secrets and confidential information are not currently protected by domestic legislation. Disputes arising from breaches of trust or breach of contract can be resolved in the courts.

The following methods can be used to protect trade secrets:

Identifying and marking all documents as confidential.
Identifying which employees have access to trade secrets and critical information.
In addition to ensuring and maintaining computer security, non-disclosure agreements must also be in place.
A trade secret should be recorded either by self-posting and retaining postmarked and sealed envelopes, or by depositing a copy with a third party who maintains a dated record.

January 2023

Delhi High Court sets aside registration of ‘Swiss Military’ trademark by private company

The Delhi High Court has set aside the registration of ‘Swiss Military’ and the logo by a private company called Promoshirts SM. The HC has held that a red cross with white background and the words ‘Swiss Military’ serve as a source identifier for the goods of Swiss Origin for the public.

January 2023

Return of iconic Yezdi motorcycle hits legal hurdle, Karnataka HC cancels trademark acquisition by heir of original maker

The return of ‘Yezdi’, an iconic Indian motorcycle from the 1970s, has suffered a legal setback with the Karnataka High Court ruling as illegal the acquisition of the ‘Yezdi’ trademark by a member of the family of the original owners — Ideal Jawa (India) Pvt Ltd — which went into liquidation two decades ago.

December 2022

India to seek IPR waiver for green energy tech at G20

India is planning to push for a waiver of intellectual property rights (IPR) for technologies related to green energy and energy transition in a bid to bridge the technology gap across G20 countries, two officials aware of the matter said. India took over presidency of the grouping earlier this month.

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Trade Secrets