Trade Secrets in Wonderland
Dr.Saurabh Siddhartha
Assistant Professor (Law) & Thought Leader/ Intellectual Property Rights & Healthcare Policies / Aspiring Associate Professor / Committed to Teaching Excellence
Discussing current implications of the doctrinal underpinnings related to Trade Secrets & the 'Equitable Action for breach of confidence'.
COCO v AN CLARK(Engineers) Ltd [1969] RPC 41
The elements of action under heads-
1) Information not in public domain
2) Communication of information in confidence
3) unauthorised use/disclosure
4) resulting in actual or apprehended damage
See (William van Caenegem 'Intellectual Property Law and Innovation', Cambridge University Press, 2007 p.p. 32)
Now, in light of UTSA, it is clear that any information/data can be a Trade Secret. It is certainly not implied expressly or otherwise to be qualitative. We are already struggling with Poor valuation Culture, especially in India. Day to day new patents are being granted, it remains a debate whether they are quality patents or not, subjective though. Hardly any of them goes through IP Valuation processes. This new headache, the Trade Secrets is another trouble. One one hand, it is protectable confidential Intellectual Property, while on other hand it lacks the standing of being qualitative or healthy. Whether it is about Trade Secrets linked with a popular quick noodle in India or popular FriedChicken chain or Most Popular Soft Drink, all three carries food/beverage related trade secret, protected spices or recipe.
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Point is - Is culture of Trade Secrets really good for human health ? Is it not cheating to consumers if they are not made aware of what's inside ? Are all franchises serving the secret taste ? I saw a youtube video yesterday where the secret chicken in basket in USA tastes different from the same chain in Indian outlet. While at both places consumers are paying for relishing the same taste. This can be called as an adjustment to local taste but this compromise in taste is not what consumers are actually paying for. As government is guardian to everyone, should not government be proactive with regard to what her citizens are consuming. Is it not causing burden on healthcare mechanisms ?
Now coming to Coco Case -
point number 4) - Actual or Apprehended damage. What is apprehended damage ? Is it some sort of prediction ? It is very likely that it gives a wider ambit of discretion rather damages which can be related to a valued data.
In my opinion, even if Trade Secrets are not protected, no one will be successful while copying it. For that, I refer to well known mark. I believe that, mostly Trade Secrets operating in India is related to food products or Sales Plan.
Trade Secrets holds no ground for protection because it may be just an hoax....Hoax because public don't know about it. Keep it in vault and your business grows in its name. Because of this dangerous product, someone gets heart attack, someone quick diabetes and what not.
If Trade Secrets were so successful, there would have been no alternatives to it. If Trade Secrets mean addiction to your health, it is harmful and better avoidable. It is great that India does not have a Trade Sceret Legislation. It is very abnormal to protect something which may or may not worth to be protected. Some of the trade secrets may be result of R&D while some sales plans, business plans may be accidentally discovered. Who knows ? The very basis of the valuation is questionable. It is funny that what you call confidential information is not confidential at all but how you use an information matters. It is like splitting a task to 50 folks and they don't know what they are doing but that's your secret.
Your salary information is to be shared with Tax department, it is not confidential either, regardless of clauses in your employment agreement. Essence of this piece of my writing is to thrash this fetish of Trade Secrets and the attempt is to totally isolate it from society. I will not name some trade secrets, you already know popular ones and the havoc to health they are causing. A business should be transparent at all costs, just like Nokia. It had no Trade Secrets, it never drummed any. Its mobile phones were simply cheap, budget friendly and very enduring. Pure quality. It never needed any stupid trade secret to beat drums in alleys.
Trade Secrets is just a publicity stunt to which public falls for and struggles to protect its own domestic industry. I enjoy fresh burgers with farm fresh vegetables and Cow Ghee products. If taste matters that much, spices are there in open market, I take what suits to me. Taste is subjective. I wonder why people are so mad over some deep fried chicken chain, while butter chicken is actually more popular globally and there are no secret recipe for it. See it on youtube and you are good to go.