Need For A Sui Generis Legislation On Trade Secret Protection - A Critical And Comparative Approach
- IJLLR Journal
- Nov 20
- 1 min read
Harinibai. R, SASTRA Deemed University.
Poorna K, SASTRA Deemed University.
ABSTRACT
In the contemporary digital-driven world, intangible assets such as trade secrets have emerged as an important strategy driving businesses and giving them a competitive edge. Unlike other forms of IPR such as patents, copyrights, and trademarks, the trade secret still lacks a standalone legislation for its protection and are currently governed under different legislations such as the contracts act, IT act, companies act and equity principles. This piecemeal approach has created a legal certainty, weak enforcement mechanism and limited remedies leading to exposure of companies especially startups and MSMEs to data theft and misappropriation especially through modern means such as phishing, hacking, insider leaks, cyber-attacks etc.,
The 289th Law commission Report recommended a dedicated trade secret protection Act but failed to include analysis on how modern cyber threats could be combatted.
This paper reassesses the need for a sui generis legislation through a comparative study of regimes in the United States, European Union, United Kingdom, China, and Japan, while analyzing TRIPS obligations under Article 39 and recent developments including the 289th Law Commission Report (2024). The paper further integrates whistleblower-protection models, especially the U.S. DTSA framework, to propose balanced mechanisms that protect trade secrets while preserving public interest and whistleblower rights. It argues that India must adopt a dedicated, technology- responsive statute incorporating confidentiality safeguards, cyber-crime deterrence, whistleblower immunity, and exemplary compensation to encourage compliance, investment and fair competition.
Keywords: trade secrets, sui generis legislation, whistleblower immunity, cyber theft, TRIPS Article 39.
