CS Professional · Intellectual Property Rights - Law and Practice · Protection of Trade Secrets
Ritu, a software developer at Nimbus Ltd, memorised the source-code logic of a proprietary algorithm without any NDA. Her employment contract has no confidentiality clause. After joining a rival, she reproduces the logic. Nimbus sues. Which view best reflects the Indian approach?
A duty of confidence can arise in equity from the employment relationship and the confidential nature of the information, even without an NDA. Nimbus may restrain misuse of specific trade secrets, but not Ritu's general skills, knowledge and experience.
- ANo claim lies because without a written NDA no duty of confidence can ever exist
- BA duty of confidence can arise in equity from the employment relationship and the confidential nature of the information, so an injunction may be granted for specific trade secrets, though general skill and knowledge cannot be restrainedCorrect
- CThe claim succeeds automatically for everything Ritu learned, including her general skills
- DThe claim lies only under the Copyright Act, as memorised logic is a literary work
Explanation
Indian courts recognise an equitable obligation of confidence even without an express contract, particularly in employment. However, an employee's general skill, knowledge and experience cannot be restrained, only specific confidential information. So the second option is correct, while the first ignores equity and the third overreaches.
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