India to consult industry on trade secrets law, whistleblower safeguards and contract enforcement
India is revisiting a proposed trade secrets law and will soon consult industry and startups on whistleblower safeguards, contract enforcement and compliance. DPIIT is weighing whether a dedicated law is needed or whether amendments to the Indian Contract Act can address contract fulfilment, while protecting confidential business information.
New Delhi: India is set to consult with the industry, encompassing startups, to draft provisions for whistleblower protection and contract enforcement as it revisits the creation of a trade secrets law. Currently, trade secrets receive protection through a mix of legal precedents and existing legislation. Officials revealed that startups and industry participants have expressed worries about increased compliance burdens, contract enforcement, and the equilibrium between safeguarding trade secrets and granting whistleblower rights during these consultations.
The Department for Promotion of Industry and Internal Trade (DPIIT) has commenced discussions on a standalone trade secrets law to safeguard unpatented inventions presently governed by contract law. While some startups apprehend a heavier compliance load under a new law, certain established firms express concerns regarding contract fulfillment under the proposed provisions.
The US, UK, Japan, China, and the EU currently possess such legislation. The proposed law would incorporate a timestamp on digital documents, demonstrating that the owner and the regulator possessed a specific confidential data at a precise date and time without disclosing its actual content. An expert on intellectual property stated that the government would maintain a repository of such documents.
The law may be uncomplicated, lacking detailed compliance requirements or return filings. A dedicated law is critical as trade secrets provide benefits like informal and relatively low-cost protection.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
