Historically, India has managed trade secret protection through a patchwork of common law principles, contract law, criminal law and principles of breach of confidence and equity. The reliance on non-disclosure agreements (NDAs) and confidentiality clauses under the Indian Contract Act, 1872, has been the norm, but these measures have often proven inadequate in cases of misappropriation. Businesses, especially those engaged in cutting-edge technology and innovation-driven sectors, have voiced concerns over this fragmented approach, highlighting numerous instances where vital business information leaked without sufficient legal recourse.
The proposal for the Bill was inspired by these concerns and the growing recognition of the inadequacy of existing legal protections compared to global standards. The 22nd Law Commission of India, understanding the urgent need for specialized legislation, drafted the proposed Trade Secrets Bill, taking into account various international models of trade secret protection from jurisdictions like the USA, EU, and Japan, which offer more comprehensive and stringent safeguards.
Source: Barandbench
