Your favourite restaurant may soon get legal protection for its centuries old recipe with the government starting discussion on possible norms for trade secrets. The latest intellectual property right (IPR), which draws upon an established practice in several countries, may actually cover everything from manufacturing processes to sales and distribution methods, ad strategies and client and vendor lists — a move that could provide comfort to companies in the service sector.
But experts are already warning of possible misuse of the provisions by foreign countries such as the European Union, which have been seeking stiff data protection laws or privacy laws and policies that minimize intrusion due to collection, storage and dissemination of personal data.
"Having a law is okay but it has to be thought through carefully otherwise you will open yourself to legal cases," said a leading IPR expert who did not wish to be identified. The new tool has been suggested under the National IPR Strategy that the commerce and industry ministry is finalizing and is in the final stages of discussion.
"Any confidential business information that provides an enterprise a competitive edge may be considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial assets. Unauthorized use of such information by persons other than the holder is regarded as an unfair practice and a violation of the trade secret," said a draft strategy paper prepared by the ministry.
On its part, what the government has suggested is slightly open-ended as it is of the opinion that what constitutes a trade secret will depend on individual cases but industrial or commercial espionage, breach of contract and confidence would be included. The World Intellectual Property Organization, the global agency dealing with IPR issues, has said that the protection can be granted without registration which can be given for an unlimited period of time provided there is commercial value and the right-holder has initiated steps such as confidentiality agreements to keep it secret.