- Previously, in 2017, Department of Legal Affairs and Legislative Department forwarded a reference to Law Commission to examine possibility of enacting Trade Secrets Act and Economic Espionage Act.
- Trade Secrets (TS): Encompass confidential business information which may be sold or licensed. It is a relatively new entrant within the domain of Intellectual Property Rights (IPR).
- Economic espionage (EE): Act of deliberate acquisition of confidential information from domestic companies and government entities to benefit a foreign State. It can be economic, industrial, or commercial.
- Need to enact Law on TS and EE
- To enable transfer of technology and cooperation among industries across borders.
- To protect creative resources and intellectual capital of MSMEs and Startups.
- To protect critical technologies and sectors such as defence, nuclear, telecom, etc., from EE.
- To consolidate existing fragmented legal framework to ensure certainty and better compliance.
- Key Recommendations
- Enact separate laws for trade secrets and economic espionage.
- Commercial espionage, however, will fall within the purview of proposed Trade Secrets Act.
- Provide broad definition of TS to allow room for judicial interpretation so that emerging aspects and industries may also fit within legal framework.
- Provide exceptions for Whistle Blowers, Compulsory Licensing and Government use, etc.
- Enact separate laws for trade secrets and economic espionage.
Existing Legal Framework on TS and EE
|