By Sandeep Hegde M. sandeep@brainleague.com www.sinapseblog.com www.onlineipcourses.com www.ipracademy.

org

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Trade Secrets are

Present

in most Business Competitive Advantage Most well guarded trade secrets

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What are Trade Secrets?

Any

information- formula, pattern, compilation, program, device, method etc. Should have these Attributes1. Independent economic value 2. Not generally known 3. Not readily ascertainable 4. Reasonable efforts to maintain secrecy

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Reasonable Measures to Maintain Secrecy

Agreements Physical

Security Confidentiality Notices Information Security

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Agreements
Employees

obligation to maintain

secrecy
Secrecy

obligations survive termination of Contract of Non-compete clauses

Validity

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What should an NDA have?

Definitions
Confidential Information Purpose

Confidentiality Term

Obligations

and Termination

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Essential Features
Must

possess commercial advantage Holder must take reasonable measures No registration required Term- as long as the secrecy is maintained Ideas that are not patentable can protected as trade secrets

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Misappropriation
Acquisition

by Improper Means Use of others trade secret without consent Derived from a person who has acquired by Improper means Derived from a person having duty to maintain secrecy Accident or Mistake

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Exceptions
Discovery

by fair and honest means Independent Invention Lawful acquisition of information Reverse Engineering

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Example
Pavmane

is the owner of a chain of eateries in Mumbai famous for its unique Vada Pav. The reason for its unique taste is Pavmanes secret masala which is known only to him and his two sons. Pavmane and his two sons personally visit every outlet and deliver the masala they make at home. Is this a trade secret?
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Example
Pavmanes

cook accidentally comes to know about the secret ingredient when Pavmane is talking to his sons. He quits his job and joins a competitors restaurant and starts preparing the unique Vada Pav. Is this misappropriation?

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Remedies
Injunction Damages Profits Reasonable

Royalties Criminal Action

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Cases
Mattel

v. MGA- Bratz dolls

Delmontes

case

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Protection Strategy
Inventions

Patentable

Non-patentable Protect as Trade Secrets

Doubtfully patentable Protect as Trade Secrets

Business Decision

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Factors to be Considered
Possibility

of Independent Creation Possibility of Successful Reverse Engineering Number of Competitors working on the invention Shelf life of the invention Number of patents relating to the invention

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Thank you
www.onlineipcourses.com www.sinapseblog.com www.ipracademy.com sandeep@brainleague.com

Friday 4 May 2012