Law Commission published its 289th Report on Trade Secrets and Economic Espionage | Current Affairs | Vision IAS
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    Law Commission published its 289th Report on Trade Secrets and Economic Espionage

    Posted 07 Mar 2024

    Updated 25 Mar 2024

    2 min read

    • 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.

     

    Existing Legal Framework on TS and EE

    • In India, there is no singular law addressing issue of misappropriation of TS.
    • Indian Contract Act, 1872 and Specific Relief Act, 1963 apply to contractual matters.
    • IPC, 1860: Sections related to theft, criminal breach of trust, cheating, etc.
      • Bharatiya Nyaya Sanhita, 2023 also contains similar provisions.
    • Tags :
    • Trade Secrets
    • Economic Espionage
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