Intellectual property

Trade Secrets & Confidential Information

India has no trade secrets statute. Protection depends on what you agree, what you do, and how quickly you act.

Protecting know-how, source code, formulae, data and business information through contracts, internal controls and urgent court action.

Indian courts protect confidential information through contract and through the equitable action for breach of confidence. The information must actually be confidential, it must have been shared in circumstances that imposed a duty of confidence, and it must have been, or be about to be, misused. In 2024 the Law Commission of India, in its 289th Report, recommended a dedicated trade secrets law and proposed a draft Bill. Until Parliament acts, the protection a business has is the protection it has built.

What protection looks like in practice

Know what the secrets are. A trade secret audit identifies the formulae, code, data, pricing and processes that matter, and who can reach them.
Contracts that work in India. Confidentiality and invention-assignment clauses for employees, consultants and vendors. Post-employment non-compete clauses are generally void under section 27 of the Indian Contract Act, so the protection has to come from confidentiality obligations, non-solicitation of confidential information, and garden leave during the notice period.
Controls that show the information was treated as secret. Access rights, marking, logging and exit protocols. Courts look closely at whether the owner protected the information itself.
A plan for when something leaks. Forensic preservation, then urgent applications.

When it goes wrong

Courts can grant ex parte injunctions, appoint local commissioners to search premises and seize material, order delivery up and award damages or an account of profits. Misuse of computer systems and data is also actionable under the Information Technology Act, and theft or criminal breach of trust under the Bharatiya Nyaya Sanhita. Electronic evidence has to meet the requirements of the Bharatiya Sakshya Adhiniyam, 2023, so how it is collected matters from day one.

How we help

Trade secret audits and mapping
Employment, consultant and vendor confidentiality terms
Joiner and leaver protocols
Urgent injunctions and search orders
Forensic investigations with technical experts
Defending misappropriation claims when hiring

Key laws

Indian Contract Act, 1872
Information Technology Act, 2000
Bharatiya Nyaya Sanhita, 2023
Bharatiya Sakshya Adhiniyam, 2023
Law Commission of India, 289th Report (2024)

Frequently asked questions

Are trade secrets protected by law in India?

Yes, though not by a dedicated statute. Indian courts protect confidential information through contract and the equitable action for breach of confidence, and grant injunctions, search orders and damages. The Law Commission of India recommended a specific trade secrets law in its 289th Report (2024), but none has been enacted yet.

Can I stop a former employee from joining a competitor?

Generally not. Section 27 of the Indian Contract Act makes agreements in restraint of trade void, and courts consistently refuse to enforce non-compete clauses after employment ends. You can enforce confidentiality obligations during and after employment, restrain the misuse of your confidential information, and enforce a non-compete during employment, including during garden leave.

What should we do first if we suspect a leak?

Preserve the evidence: devices, logs, emails and access records, with a documented chain of custody, because electronic evidence must meet the Bharatiya Sakshya Adhiniyam, 2023. Then move quickly. Courts grant ex parte injunctions and search orders when the case is clear and the application is made without delay.