Laws Relating To Non-Disclosure Agreements In India And USA
- IJLLR Journal
- 57 minutes ago
- 2 min read
Arjun S, LLM (Commercial Law), CMRU School of Legal Studies
Prof Dr. Aarati Tyagi, CMRU School of Legal Studies
1. ABSTRACT
The modern business and employment relations are built on the Non- Disclosure Agreements (NDAs) as the primary tool which guarantees the safety of the confidential data, trade secrets, and commercial data. NDAs are widely applied within the context of all technology-related sectors, pharmaceuticals to finance and entertainment, there exists a wide gap concerning the legal frameworks of the enforceability of NDAs in India and the USA. The most prominent type of control on NDAs in India is the Indian Contract Act, 1872 and judicial interpretation wherein the court determines the scope between restraints that are permitted and restraints that are void under the Section 27. The US has a strong legislative base under the DTSA, 2016 and the Uniform Trade Secrets Act, which are backed up with rich state-wide case law. This paper will give a comparative analysis of the legal controls within the jurisdiction, their enforceability, judicial adjudication and remedies that can be used in legal NDA in both jurisdictions. It makes the comparison of landmark case law in the two countries, talks about the difference in doctrine between interpretation of reasonableness and extent performed by courts in either country, and talks about new aspects of digital commerce and artificial intelligence, and cross-border contractual structure. The article concludes that the United States possesses a more structured and coherent regime to enforce the NDA, however, the Indian courts have found a finer line between the interests of commerce and the constitutional worth of free trade of individual liberty.
Keywords: Non-Disclosure Agreements, Trade Secrets, Indian Contract Act, Defend Trade Secrets Act, Confidentiality
