Trade Secrets 2026

INDIA Law and Practice Contributed by: Pravin Anand and Rohil Bansal, Anand and Anand

1.4 Elements of Trade Secret Protection There is no codified law in India defining the elements of trade secret protection. The Bombay Dyeing case (supra) identifies the elements essential for informa - tion to be classified as a trade secret, as detailed in 1.2 What Is Protectable as a Trade Secret . Various judgments have unanimously laid down that the quality of confidentiality makes the information eligible for legal protection as a trade secret. It is very important for the owners of confidential information to show that reasonable efforts were expended by them to maintain secrecy. If such efforts cannot be proved, the owners risk losing the quality of confidence even if such information is obtained by third parties without permission. An important element for confidential information to be categorised as a trade secret is an obligation on any other person who receives it to maintain its secrecy, if they have received it with the knowledge of obligation of confidence. The Bombay High Court in the case of Beyond Dreams Entertainment Pvt Ltd and Others v Zee Entertainment Enterprises Ltd and Another , (2016) 5 Bom CR 266 has laid down the three conditions that must be ful - filled in order to protect trade secrets in a civil action: • the information must be confidential; • the information must have been disclosed in cir - cumstances from which an obligation of confidenti - ality arises; and • the confidant should be attempting to use or dis - close the information. 1.5 Reasonable Measures It is important for the owner of a trade secret to show that they took reasonable measures to maintain secre - cy regarding such information. Trade secrets are pro - tected in India either under contract law or through the equitable doctrine of breach of confidentiality, by way of: • cautionary notice; • restrictive covenants; • non-disclosure agreements; and • other contractual means.

that reasonable efforts have been made to keep such information confidential, and it is only when this bur - den is discharged that such confidential information may be legally protected as a trade secret. 1.3 Examples of Trade Secrets The Calcutta High Court in the case of Hi-Tech Sys- tems & Services Ltd v Suprabhat Ray and Others , (2016) 1 ICC 584 held that business information such as cost and pricing, projected capital investments, inventory marketing strategies and a customer’s list may qualify as trade secrets. Moreover, the court would need to find out whether the information that was acquired during the course of employment is now being used as the spring-board to enable said respondents to exploit such database in the course of their business. The Delhi High Court in the case of American Express Bank Limited v Priya Puri , CS (OS) No 1442/2005 held that a trade secret can be a formula, technical know-how or a peculiar mode or method of business adopted by an employed which is unknown to others. In the case of Anil Gupta and Others v Kunal Das Gupta and Others , 97 (2002) DLT 257, the High Court of Delhi held that the concept note developed by the plaintiff qualified for protection, as it was a result of intellectual input and expertise of the plaintiff in apply - ing material available in the public domain to create a unique concept, which was otherwise kept secre - tive. As the concept note was shared under an implied understanding of secrecy, the plaintiff’s “sweat of the brow” or, alternatively, know-how was recognised and subsequently protected by the court. There cannot be an exhaustive list of all examples of trade secrets. However, one has to keep in mind that, for any confidential information to be protected as a trade secret, it is necessary to show that such information which is claimed to be confidential infor - mation is not available in the public domain and is hence unknown to others, and that the owner of such information has taken reasonable steps to keep it con - fidential. Please also see 1.2 What Is Protectable as a Trade Secret .

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