Skip to content

CS Professional · Intellectual Property Rights - Law and Practice · Protection of Trade Secrets

Lotus Beverages Pvt Ltd discloses its confidential blending method to a bottling partner under a non-disclosure agreement. The partner later passes it to a competitor. In a suit, which element is most essential for Lotus to establish under the breach of confidence approach followed in Indian courts?

Lotus must show the information had the quality of confidence and was disclosed under an obligation of confidence, here the NDA, followed by unauthorised use. Registration is not required, and publication would defeat the claim because the secrecy would be lost.

  1. AThat the information was not registered with any authority
  2. BThat the information had the necessary quality of confidence and was disclosed in circumstances imposing an obligation of confidenceCorrect
  3. CThat the competitor is a foreign company
  4. DThat the information was published in a trade journal

Explanation

The classic test requires confidential information, communicated in circumstances importing an obligation of confidence, followed by unauthorised use. Registration is irrelevant, nationality of the competitor does not matter, and publication would destroy confidentiality.

Did you get it right without looking?

One question tells you little. A timed set on Protection of Trade Secrets shows your real accuracy, how long you take and where you lose marks.

Practise Protection of Trade SecretsFree diagnostic mock

More Protection of Trade Secrets questions