US technology companies Microsoft and Intel are lobbying for a legally enforceable Trade Secrets regime in India to ensure that action can be taken against offenders in case company secrets are leaked.
In representations to the Department of Industrial Policy and Promotion on the new intellectual property rights (IPR) strategy being framed by the Government, both companies as well as US-based industry chambers stressed that India should strengthen its trade secret laws to enhance investor confidence and attract more investments, a Government official told BusinessLine .
Trade secrets refer to confidential information or data not in the public domain, which hold commercial value for a business.
The US Government, too, is supporting its industry in its efforts. US Trade Representative Michael Froman recently took up the matter of trade secret protection in his discussions with Commerce & Industry Minister Nirmala Sitharaman.
India, however, is not too keen to go along with the US suggestion of a specific legislation to protect trade secrets as it believes that existing common law and contract law principles give companies the requisite protection. Besides, India is also working on a National Innovation Bill, which, in addition to promoting innovation, will also have provisions for the protection of confidential information.
India’s stand“Just because the US has recently put in place a uniform Trade Secrets Act does not mean that India, too, has to jump on the boat. We have agreed to exchange information with them on existing laws on the matter, but we will not be pressurised into doing anything,” another official said.
The US companies believe that as knowledge economy grows, India needs to move away from the British model of contractual protection. “Statutory protection of trade secrets as IP would be enhanced further with the addition of specific criminal sanctions for deliberate misappropriation. Such provisions would do much to enhance investor confidence and encourage more high tech investment,” Intel said in its representation.
According to Microsoft India, there is a need to protect trade secrets effectively, particularly those related to business methods, as they are not protected under the Patent Act or any other statute.
“We recommend that the draft National Innovation Bill, 2008, should be amended to provide adequate coverage under the definition of trade secrets to include knowhow, methods of doing business, and technical and business information. The Bill should be expeditiously tabled in Parliament,” it said in its presentation.