Trade Secrets
Trade secrets are intellectual property (IP) rights on confidential information which may be sold or licensed (WIPO).
A Trade secret is an information that is useful in the industry and is kept confidential as it is often crucial for the very survival of the business. It is information that imparts value to its holder and one that provides a competitive edge over its competitors.
Trade secret include strategies, designs, client database, formulae, programs, and any other information which is confidential in nature and needs to be kept a secret.
- commercially valuable because it is secret,
- be known only to a limited group of persons, and
- be subject to reasonable steps taken by the rightful holder of the information to keep it secret, including the use of confidentiality agreements for business partners and employees.
Technical information, such as information concerning manufacturing processes, pharmaceutical test data, designs and drawings of computer programs.
Technical information, such as information concerning manufacturing processes, pharmaceutical test data, designs and drawings of computer programs.
A trade secret may be also made up of a combination of elements, each of which by itself is in the public domain, but where the combination, which is kept secret, provides a competitive advantage.
Contract law
- Non-disclosure agreement (NDA): Between employees and business partners that prevent them from disclosing a company’s confidential information.
- Non-compete agreement (NCA): Between employees, contractors and consultants to sign a non-compete agreement to prevent them from entering in competition when their employment/service agreement ends.
- Robust IT security infrastructure
- Controlling the accessibility of important documents
Copyright law
Copyright protects the expression in the compilations and on the other trade secret laws protect the underlying data. However, in practice these two elements often converge so much so that any infringement of the copyright can also harm the secrets of the business.
Principles of equity and common law action of breach of confidence (which is basically breach of an obligation to keep a piece information secret).
The Information Technology law of 2000 also sets legal means of protection to confidential information in the form of the electronic records.
Enforcement of trade secrets
Civil action: Misappropriation or unauthorized disclosure of trade secrets includes civil action for breach of contract and wrongdoing due to misappropriation.
An injunction granted by courts can restrain the wrongdoer from disclosing trade secrets as well as damages can be sought by the trade secret owner.
Other civil actions which the courts can grant to the trade secret owner in case of trade secret leakage is return of trade secrets or materials containing trade secrets.
Criminal action: for theft and breach of trust. Fine or imprisonment can be granted by courts under penal code, copyright and information technology law.
Our Attorney at AWALNUT IPR help the clients to create protection of trade secrets by writing NDAs and non-compete clauses for client’s business’s employment contracts. Employees create and use trade secrets, so clearly communicating confidentiality expectations through these agreements is critical to avoid trade secret infringement.
Our Attorney at AWALNUT IPR can help protect client’s business from unauthorized disclosure and use of trade secrets and can help advise them on when to use an alternative form of intellectual property protection to secure your trade secret.