The Role Of Contract Law In Protecting R&D Trade Secrets In India
- IJLLR Journal
- 40 minutes ago
- 1 min read
Riya Khedekar, School of Law, Vijaybhoomi University
Anuradha Padhy, School of Law, Vijaybhoomi University
ABSTRACT
In today’s knowledge-driven economy, safeguarding trade secrets— particularly those arising from research and development (R&D)—is essential for industrial growth and innovation. Unlike patents or copyrights, trade secrets do not require registration; their value depends on confidentiality. However, India lacks a dedicated statute for trade secret protection, leaving sensitive business information and R&D results vulnerable to misuse. In practice, companies rely on contractual safeguards such as non-disclosure agreements (NDAs), confidentiality clauses, and employment contracts to secure proprietary data.
This paper critically examines the adequacy of Indian contract law in protecting trade secrets and R&D outcomes. It highlights the strengths and limitations of contractual mechanisms, evaluates judicial interpretations, and addresses enforcement challenges. A particular concern is Section 27 of the Indian Contract Act, 1872, which restricts agreements in restraint of trade and creates uncertainty regarding non-compete clauses often used to protect trade secrets. By employing doctrinal and comparative analysis, the study contrasts India’s framework with international regimes, including the United States ’Defend Trade Secrets Act, 2016, and the European Union’s Trade Secrets Directive, 2016.
The findings suggest that contractual protection, though significant, is inadequate on its own. The study recommends the introduction of a comprehensive trade secrets law in India to strengthen R&D protection, encourage innovation, and align with global practices.
