Law Commission published its 289th Report on Trade Secrets and Economic Espionage | Current Affairs | Vision IAS
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Law Commission published its 289th Report on Trade Secrets and Economic Espionage

Posted 07 Mar 2024

Updated 25 Mar 2024

2 min read

  • Previously, in 2017, Department of Legal Affairs and Legislative Department forwarded a reference to Law Commission to examine possibility of enacting Trade Secrets Act and Economic Espionage Act.

 

  • Trade Secrets (TS)Encompass confidential business information which may be sold or licensed. It is a relatively new entrant within the domain of Intellectual Property Rights (IPR).

 

  • Economic espionage (EE): Act of deliberate acquisition of confidential information from domestic companies and government entities to benefit a foreign State. It can be economic, industrial, or commercial

 

  •  Need to enact Law on TS and EE
    • To enable transfer of technology and cooperation among industries across borders.
    • To protect creative resources and intellectual capital of MSMEs and Startups.
    • To protect critical technologies and sectors such as defence, nuclear, telecom, etc., from EE.
    • To consolidate existing fragmented legal framework to ensure certainty and better compliance.

 

  • Key Recommendations
    • Enact separate laws for trade secrets and economic espionage.
      • Commercial espionage, however, will fall within the purview of proposed Trade Secrets Act.
    • Provide broad definition of TS to allow room for judicial interpretation so that emerging aspects and industries may also fit within legal framework.
    • Provide exceptions for Whistle Blowers, Compulsory Licensing and Government use, etc.

 

Existing Legal Framework on TS and EE

  • In India, there is no singular law addressing issue of misappropriation of TS.
  • Indian Contract Act, 1872 and Specific Relief Act, 1963 apply to contractual matters.
  • IPC, 1860: Sections related to theft, criminal breach of trust, cheating, etc.
    • Bharatiya Nyaya Sanhita, 2023 also contains similar provisions.
  • Tags :
  • Trade Secrets
  • Economic Espionage
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