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

Veda Spices Pvt Ltd, Pune, has a secret blend ratio known only to three senior employees, who sign confidentiality agreements. A rival learns of it from a former employee and starts using it. Veda wants to sue. Which statement best describes the legal position of trade secrets in India?

In India trade secrets are protected mainly through contract, equity and breach of confidence under common law, because there is no dedicated trade secrets statute and no registration system. Veda can rely on its confidentiality agreements and seek an injunction and damages.

  1. AIndia has a dedicated trade secrets statute under which Veda must first register the blend with the Controller
  2. BTrade secrets are protected mainly through common law principles of breach of confidence, equity and contract, as India has no specific trade secrets statuteCorrect
  3. CTrade secrets are protected only under the Patents Act, 1970 for twenty years
  4. DTrade secrets receive protection only if published in the Official Journal

Explanation

India has no standalone trade secrets legislation. Protection comes from contract law, equitable principles of breach of confidence and common law remedies such as injunctions and damages. Registration is not available, so the option suggesting a Controller's registration is wrong.

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