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CS Professional · Intellectual Property Rights - Law and Practice · Types of Intellectual Property

Ravi Textiles' former designer, Arjun, joins a competitor and, without using any document, uses only the general skills, know-how and experience he gained while employed. Ravi Textiles sues, claiming misuse of trade secrets. How is a court in India most likely to view the claim?

The claim will likely fail regarding general skills and experience. Indian courts allow employees to use general knowledge gained in a job, while protecting specific confidential information after employment. Broad post-employment restraints are generally unenforceable, so only genuinely confidential material can be protected.

  1. AIt will succeed, because every item of knowledge acquired in employment is a trade secret of the employer
  2. BIt will succeed, because a post-employment restraint of trade is always enforceable if the employee signed any contract
  3. CIt will fail as to general skills and experience, since employees may use general knowledge, though specific confidential information remains protectedCorrect
  4. DIt will fail, because trade secrets can be protected only during the subsistence of employment

Explanation

Courts distinguish an employee's general skill and experience, which he may freely use, from specific confidential information, which is protected. Post-employment restraints on trade are generally void under the Contract Act, so option B is wrong. Option D is wrong because confidentiality obligations can continue after employment.

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