Trade Secrets Definition in the New Iranian Act on Industrial Property with a Comparison to American Law and the TRIPS Agreement

Document Type : Original Article

Authors

1 Associate Professor, Department of Islamic Jurisprudence and Principles of Islamic Law, Faculty of Theology and Islamic Studies, Ferdowsi University of Mashhad, Mashhad, Iran

2 Associate Professor, Department of Private Law and Intellectual Property Law, Faculty of Law, University of Qom, Qom, Iran

Abstract

Trade secrets have gained unprecedented importance in all fields of industry and have emerged as a critical component of many firms' intangible assets following the big changes seen during the past decades. Achieving and preserving a competitive advantage over competitors is vital for many enterprises and trade secrets are an essential means for fulfilling this goal. Nevertheless, the mere possession of valuable trade secrets is not enough. There must be adequate safeguards by trade secrets holder, and more importantly, effective legislative measures are necessary to ensure the secrecy of such information. In an attempt to accomplish this task, the Iranian legislator has provided for protection of trade secrets in a specific chapter of the new Act on Industrial Property. This paper, employing a descriptive-analytical method, examines the definition of trade secrets articulated by the Iranian legislator and compares it with the definitions enshrined in two main American statues and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The analysis concludes that while the Iranian definition is an appropriate step forward, when compared to the U.S. and TRIPS counterparts, it remains imperfect in certain material respects and consequently requires amendment.

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Main Subjects


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