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

Veda Pharma Pvt Ltd, Pune, has a secret blend of excipients that gives its tablets a longer shelf life. It has never applied for any registration of this blend. A rival hires a former Veda chemist who had signed a confidentiality agreement and uses the blend. Which statement best describes the legal position in India?

Veda can sue for breach of confidence and breach of the confidentiality contract. India has no dedicated trade secrets statute and no registration system, so protection rests on contract, equity and common law, with remedies such as injunction and damages.

  1. ANo remedy exists because India has a dedicated trade secrets statute that requires prior registration, which Veda did not obtain
  2. BVeda can sue for breach of confidence and breach of contract, as India has no dedicated trade secrets statute and protection rests on contract, equity and common lawCorrect
  3. CVeda can claim only criminal penalties under the Patents Act, 1970, because the blend is an invention
  4. DVeda can claim protection only if it first publishes the formula in the Gazette

Explanation

India has no standalone trade secrets Act and no registration system. Protection comes from contractual obligations, the equitable doctrine of breach of confidence and common law remedies such as injunctions and damages. The first option wrongly assumes a registration-based statute exists.

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