CONCEPT: Trade Secrets: Trade secret is any intellectual work or

product used for a business purpose that can be classified as belonging

to that business provided it is not based on information in public domain.
Any confidential business information which provides an enterprise a
competitive edge may be considered a trade secret. Trade secrets
encompass manufacturing or industrial secrets and commercial secrets.
The unauthorized use of such information by persons other than the
holder is regarded as an unfair practice and a violation of the trade
secret. Depending on the legal system, the protection of trade secrets
forms part of the general concept of protection against unfair
competition or is based on specific provisions or case law on the
protection of confidential information.

The subject matter of trade secrets is usually defined in broad terms and
includes sales methods, distribution methods, consumer profiles,
advertising strategies, lists of suppliers and clients, and manufacturing
processes. While a final determination of what information constitutes a
trade secret will depend on the circumstances of each individual case,
clearly unfair practices in respect of secret information include industrial
or commercial espionage, breach of contract and breach of confidence.

A trade secret consists of

• a formula, device, idea, process, pattern, or compilation of
information that gives the owner a competitive advantage in the
marketplace,
• a novel idea that is not common knowledge and is kept in a
confidential state.
• A trade secret is not protected by federal law
• Can only be protected through employment contracts and/or
maintaining tight security
• Recipes, ingredients, codes, manufacturing costs
Variants of Trade Secrets
• Limited rights in technical data
• Restricted rights in computer software
• Government purpose rights
• special license rights

Contrary to patents, trade secrets are protected without registration, that

is, trade secrets are protected without any procedural formalities.
Consequently, a trade secret can be protected for an unlimited period of
time. For these reasons, the protection of trade secrets may appear to be
particularly attractive for SMEs. There are, however, some conditions
for the information to be considered a trade secret. Compliance with
such conditions may turn out to be more difficult and costly than it
would appear at first glance. While these conditions vary from country
to country, some general standards exist which are referred to in Art. 39
of the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS Agreement):

 The information must be secret (i.e. it is not generally known

among, or readily accessible to, circles that normally deal with the
kind of information in question).
 It must have commercial value because it is a secret.
 It must have been subject to reasonable steps by the rightful holder
of the information to keep it secret (e.g., through confidentiality
agreements).

GEOGRAPHICAL INDICATIONS OF GOODS

Geographical Indication: This is an indication that originates from a
definite geographical area, which is used to identify natural or
manufactured product OR used to identify agricultural, natural or
manufactured goods. The manufactured goods should be produced or
processed or prepared in that territory. It should have a special quality or
reputation or other characteristics . For eg., Gadwal/ Pochampally
Sarees, Nirmal paintings, Kolhapuri Chappals, Solapur Chaddar ,
Kanchipuram silk sarees, Banginapalli /Alphonso Mango, Darjeeling
Tea, Tirupati Laddu, Nagpur Orange, Bikaneri bhujia) etc. They qualify
for registration under this category. It is valid for 10 years. The
application for registration can be an association of persons, organization
or by producers.
• Geographical indication is an indication originating from a definite
geographical territory and used to identify agricultural, natural or
 manufactured goods. The manufactured goods should be produced
or processed or prepared in that territory. It should have a special
quality or reputation or other characteristics. (e.g.
• GIs when registered confers legal protection in India through the
Geographical Indications of Goods (Registration & Protection) Act
of 1999, prevents unauthorised use of registered GI, promotes the
economic prosperity of the producers of goods produced in a
geographical territory which in turn boost exports.
• Any association of persons, producers, organisations or authority
established by or under the law, representing the interests of the
producers can apply for registration of GI to the Registrar of GI in
the prescribed format along with the prescribed fee.
• A producer of goods can apply for registration as an authorised
user of a registered GI. Producer in the case of agricultural goods
means a person engaged in the production, processing, trading or
dealing in such goods; in the case of natural goods, a person
engaged in exploiting, trading or dealing; in the case of handicrafts
or industrial goods, a person engaged in making, manufacturing,
trading or dealing in such goods.
• An authorised user has the exclusive rights to the use of
geographical indication in relation to registered goods. The
registration of GI is valid for a period of 10 years and can be
renewed from time to time for a further period of 10 years each.
• A regd. GI is a public property belonging to the producers of the
concerned goods and hence it can not be assigned / transmitted /
licenced / pledged or mortgaged.
 INFRINGEMENT
• When an unauthorised user uses a GI that indicates or suggests that
such goods originate in geographical area other than the true place
of origin of such goods in a manner which mislead the public as to
the geographical origin of such goods; or,
• when the use of a GI result in an unfair competition including
passing off in respect of registered GI; or When the use of another
GI results in false representation to the public that goods originate
in a territory in respect of which a registered GI relates, it
constitutes infringement.
• The registered proprietor or authorised users of a regd. GI can
initiate infringement action.
• Geographical Indications of Goods are defined as that aspect of
industrial property which refers to the geographical indication
referring to a country or to a place situated therein as being the
country or place of origin of that product.

What is a Geographical Indication?

• Ø It is an indication
• Ø It originates from a definite geographical territory.
• Ø It is used to identify agricultural, natural or manufactured goods
• Ø The manufactured goods should be produced or processed or
prepared in that territory.
• Ø It should have a special quality or reputation or other
characteristics
• Examples of Indian Geographical Indications -
• Ø Solapur Chaddar
• Ø Solapur Terry Towel
• Ø Basmati Rice
• Ø Darjeeling Tea
• Ø Kanchipuram Silk Saree
• Ø Alphanso Mango
• Ø Nagpur Orange
• Laws relating to Geographical Indication of Goods
• Geographical Indications of Goods (Registration and Protection)
Act, 1999 and The Geographical Indications of Goods
(Registration and Protection) Rules, 2002 deal with registration
and better protection of geographical indications relating to goods.
The primary purpose of this Act is to provide legal protection to
Indian Geographic Indications which in turn boost exports.
Registration of Geographical indication promotes economic
prosperity of producers of goods produced in a geographical
territory.
• According to the Act, the term 'geographical indication' (in relation
to goods) means "an indication which identifies such goods as
agricultural goods, natural goods or manufactured goods as
originating, or manufactured in the territory of a country, or a
region or locality in that territory, where a given quality, reputation
or other characteristic of such goods is essentially attributable to its
geographical origin and in case where such goods are
 manufactured goods, one of the activities of either the production
or of processing or preparation of the goods concerned takes place
in such territory, region or locality, as the case may be".
Fees
• 1. Fees may be paid in cash or sent by money order or by a bank
draft or by a cheque.
• 2. Bank Drafts or cheques should be crossed and be made payable
to the Registrar at the appropriate office of the Geographical
Indication Registry.
• 3. It should be drawn by a scheduled bank at the place where the
appropriate office of the Geographical Indications Registry is
situated.
• 4. Where a document is filed without fee or with insufficient fee
such document will be deemed to have not been filed.
• Sizes
• 1. All applications should be typewritten, lithographed or printed in
Hindi or in English.
• 2. It should in large and legible characters with deep permanent ink
upon strong paper, on one side only.
• 3. The size should be approximately 33 cms by 20 cms and shall
have on the left and part thereof a margin of not less than 4
centimeters.
• Signing of documents
• 1. In case of -
• i. An association of persons or producers shall be signed by the
• authorized signatory.
• ii. A body corporate or any organization or any authority
• established by or under any law for the time being in force shall be
• signed by the Chief Executive, or the Managing Director or the
secretary
• or other principal officer.
• Iii) In case of partnership it shall be signed by at least one of the
partners.
• 2. The capacity in which an individual signs a document should be
stated below his signature.
• 3. Signatures should be accompanied by the name of the signatory
in English or in Hindi and in capital letters.
• Principal place of business in India
• 1. Every application for registration of a G.I should state the
principal place of business in India.
• 2. A body corporate should state the full name and nationality of
the Board of Directors.
• 3. Foreign applicants and persons having principal place of
business, in their home country should furnish an address for
service in India.
• 4. In the case of a body corporate or any organization or authority
established by or under any law for the time being in force, the
country of incorporation or the nature of registration, if any, as the
case may be should be given.
• Infringement of Geographical Indication
• A registered geographical indication is infringed if an unauthorized
user uses it to indicate or suggests that certain goods originate from
a geographical area other than the true place of origin in a manner
which misleads the public as to the geographical origin of the
goods, or when use of the geographical indication results in unfair
competition. This includes passing off in respect of a registered
geographical indication, or when the use of another geographical
indication results in false representation to the public that goods
originate from a territory in respect of which there is a registered
geographical indication. The registered proprietor or the authorized
users of a registered geographical indication can initiate an
infringement action.
•