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

Veda Pharma Ltd., Pune, shared its confidential manufacturing process with a contract chemist, Rohan, under a written non-disclosure agreement. Rohan later disclosed it to a rival firm. India has no dedicated trade secret statute. On what basis can Veda Pharma most directly sue Rohan?

Veda Pharma can sue for breach of confidence and breach of the non-disclosure contract. India has no dedicated trade secret statute or registration system, so protection rests on common law equity, contract and tort principles, not on patent or trademark law.

  1. AInfringement under the Patents Act, 1970, because the process is a patent
  2. BBreach of confidence and breach of the contractual non-disclosure obligation, under common law and contract lawCorrect
  3. CInfringement of a registered trade secret under a registration certificate
  4. DPassing off under the Trade Marks Act, 1999

Explanation

Indian courts protect trade secrets through equity (breach of confidence), contract law and tort principles, since no specific statute or registration exists. Rohan's NDA breach gives a direct contract claim plus a confidence claim. The Patents Act option fails because the process was never patented, and trade secrets are not registered.

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