Recommendation for New Legislation to Protect Trade Secrets: 22nd Law Commission headed by Justice Ritu Raj Awasthi
The 22nd Law Commission, headed by Justice Ritu Raj Awasthi, has recommended the introduction of new legislation to protect trade secrets in India. Trade secrets are confidential information that hold value from being kept secret, and currently, they are safeguarded under general laws governing contracts, common law, criminal law, and breach of confidence principles.
The 289th Law Commission Report, titled ‘Trade Secrets and Economic Espionage’, highlights the need for specific legislation to protect trade secrets. The report mentions that the Department of Legal Affairs and the Legislative Department have prepared a concept paper, draft cabinet note, and a draft Bill for the Economic Espionage Act and Trade Secrets Protection Act.
The Law Commission, after extensive deliberations with experts from various sectors, has proposed a draft Protection of Trade Secrets Bill, 2024. The Commission has also considered India’s obligations under the TRIPS Agreement and studied laws related to trade secrets in other jurisdictions like the UK, USA, EU, and Germany.
The report emphasizes the importance of legislation to address trade secret leakages and economic espionage, stating that even trade secrets held by the Government of India have been targeted by foreign governments. The National Intellectual Property Rights Policy, 2016, and the Parliamentary Standing Committee Report have also highlighted the need for legislation to protect trade secrets.
Overall, the recommendation for new legislation to protect trade secrets in India comes after thorough evaluation and consideration of the complexities surrounding the subject matter. The proposed Protection of Trade Secrets Bill, 2024, aims to provide comprehensive protection for trade secrets and address issues related to economic espionage.