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Trade secrets are one of a company's most valuable types of intellectual property. Any method, design, data, procedure, expertise, or pattern with economic value might be classified as a secret. Only a few people in the firm are usually aware of trade secrets; in most cases, only a few people are aware of this knowledge. They are a collection of data that gives a company a competitive advantage over its competitors. Under Article 39 of the TRIPS Agreement, a "trade secret" is described as a secret that is not available to all members of an organisation; it must have economic value, and the person who is legally responsible for keeping it a secret must have taken all reasonable steps to safeguard it. 

Trade secrets, unlike other types of intellectual property that require registration to be safeguarded, do not involve any kind of registration. Non-disclosure agreements must be incorporated in their employment contracts with the corporation for those who are legally assigned to keep it a secret. A non-disclosure agreement (NDA) is a sort of legal confidential agreement involving two or more parties to a transaction that establishes a confidential connection between them and provides for compensation repercussions if the agreement is breached. Unlike patents, copyright, and trademarks, trade secrets do not even have a specified time term for protections. It is not necessary to renew knowledge that has been kept as a trade secret. It can stay the same everywhere long as the owner of the trade secret agrees. However, precautions must be made to safeguard the information's privacy.

Why India needs Policy Reform of Trade Secret in the new Digital Age !?

We have reached the digital revolution in the twenty-first century, and cyber theft has been a huge setback for most enterprises. Countries have erased all worldwide trade obstacles as a result of globalisation, allowing them to develop their businesses all over the world and supply a diverse range of high-quality goods and services to their clients. As a result, it appears that just preserving one's most vital company knowledge through private agreements has harmed the trade. Trade secrets are one of the oldest kinds of intellectual property that is currently unprotected by distinct and adequate law that includes a comprehensive framework for violation and particular owner rights. 

In today's digital era, data has evolved into a valuable instrument, and many nations have particular legal protections in place to safeguard trade secrets. Despite this, India does not have any regulation pertaining to the protection of trade secrets. Phishing, spying, bullying, hacking, distributing fake news, and other violations are not properly addressed by the IT Act of 2000. India urgently requires a distinct data protection legislation with well-developed current methodologies and rules to address issues that may arise as a result of recent or future technology breakthroughs.

Trade secrets were maintained physically someplace before the digital age, and there was a risk of theft of that physical content. However, actual existence of information is no longer required. Information technology advancements are a terrific tool for growing a business and communicating with consumers, but they also increase the danger of data abuse or cyber-crime. Improper use of a company's sensitive data is considered an unfair trade practice. Previously, if someone wanted to exploit the company's information, they might steal the physical documents that were kept at the office. However, everything is now saved in software or a virtual vault. 

Nevertheless, obtaining a company's trade secrets is not insurmountable for a cybercriminal or a hacker. The cyber-criminal or hacker can readily access the data from his or her room. As a consequence, it is critical for the owner of trade secrets to be extremely cautious and protective of commercial trade secrets. Access to private information should be restricted to a minimum. Others will try to figure out their rivals' trade secrets at this time, but limiting the knowledge to certain persons, signing NDAs, having a SWAT squad, and having superior software will assist to lessen the risks of cyber theft. SWAT, on the other hand, stands for special weapons and tactics. The bulk of the issues arise as a result of the lack of a dedicated staff inside the organisation responsible for the protection of trade secrets and other sensitive information. SWAT is a special unit dedicated to the safeguarding of trade secrets. The courts also ignored the cases of businesses that failed to appoint a person or group to oversee trade security. As a result, lifelong training and capacity development with personnel and third - party partners should be a need. In this digital age, it is critical to safeguard data with extreme caution. 

Inventory security requires both physical and technological safeguards. In order to be protected against unfair competition with trade secrets, Japanese courts have held that the corporation must "exercise controls on physical and technological access" so that information can be regarded "private." Companies should also implement physical and professional privacy and security safeguards, as well as data confidentiality.  The Delhi High Court granted an injunction in John Richard Brady v Chemical Process Equipments Pvt. Ltd AIR 1987 Delhi 372, where the plaintiff had shared specialised data and details of the defendant company's creation unit despite the lack of a non-disclosure agreement (NDA) between the parties involved in the suit. 

Lawyered’s Take 一

The laws of Indian law concerning cybercrime are inadequate to deal with problems in the digital realm. With the fast increase of cybercrime, the law must likewise evolve to keep up with societal trends. In order to develop, the country must embrace the changes that occur on a daily basis and adapt its legal infrastructure to handle them. In India, trade secret safeguarding is at an all-time high. India, as a developing country, has enormous potential in terms of expanding its digital infrastructure. With enough R&D on trade secrets, laws might be established as a distinct legal framework concentrating solely on the conundrums of an enterprise's sensitive knowledge.