A trade secret is confidential data or confidential information that relates to business and is generally kept as a secret by the owner. These are kind of information that pertains to certain commercial value and commercial gain to the owner[1]. In the case of Coco v AN Clark Engineers Ltd[2], it was held that the kind of information which will be protective must not be something in public property and public knowledge. For any information to qualify as a trade secret it must qualify the following elements
- The information which is not known to the general public and is not readily accessible rather it must be restricted to a limited number of people.
- Reasonable measures are taken by the owner to maintain the confidentiality of the information.
- The information must be of scientific, technical, and related to useful arts or business.
- The information must be associated with economic benefit to the owner’s right and provide the owner of information with commercial gain and this aspect becomes lost when the information is revealed.
The TRIPS agreement refers to the trade secret as ‘undisclosed information’. The trade secret can range from any technical, scientific, and financial information. Some examples of trade secrets can be formulas for drugs, chemicals, cosmetics, foods and industrial processes, and manufacturing techniques.
The formula of coca cola is the most famous example of a trade secret that is protected in a bank vault in Atlanta and is only accessible only when the board of the company passes a resolution. It remains known only to two employees of the company at the same time and they are not even allowed to fly in the same plane.
In the case of Bombay Dyeing & Manufacturing Co Ltd v Mehar Karan Singh[3], it was observed by the court that information such as formula, pattern, compilation, programme, device, method, technique, or process, which derives an independent economic value from not being known.
In today’s business world, there is a huge concern underlying protecting certain information confidential and for the same, there are efforts being made along with tremendous investments. Thus, the law guarantees enforcement of trade secrets with an object to make good the loss which is suffered by the owner as a result of unauthorized exploitation of trade secrets.
BY- AISHWARYA N.
4th YEAR, UPES LAW SCHOOL
INTERN AT BASKARAN AND ASSOCIATES LLP
[1] Sreenivasulu NS, Intellectual Property Rights, Second Revised and Enlarged Edn, 2011, Regal Publications, New Delhi, p 160
[2]Coco v AN Clark Engineers Ltd (1969) RPC 41.
[3] Bombay Dyeing & Manufacturing Co Ltd v Mehar Karan Singh 2010 (112) Bom LR 3759. 2010 (112) Bom LR 3759.