Girish Shetty, Alliance University, Bangalore
ABSTRACT
Even though India is a signatory to Trade-Related Intellectual Property Rights (TRIPs), India does not have special legislation to protect confidential information. The protection of confidential information in India in most of the situations chosen by the parties under the law of contract or common law. The general principles of the contract of the Indian Contract Act of 1872 apply to all agreements including the agreements protecting confidential information. Section 27 of the Indian Contract Act of 1872 provides that the covenant in restraint of lawful profession, business, or trade is void. The covenant of restraint is valid if the covenant of restraint falls under the statutory exceptions, or the exceptions recognized by courts and held to be reasonable. Some of the covenants of restraint like covenant on confidentiality and covenant of restraint not to solicit employees and customers will explicitly and directly protects confidential information. On the other hand, covenants of restraint pertain to the sale of goodwill, covenants pertain to an exclusive agreement, or covenants of non- competition may protect confidential information with the indirect effect of these covenants. These covenants protect confidential information from dissemination and misappropriation of confidential information.
