Confidential Information is generally information which is the object of an obligation of confidence and is used to cover all information of a confidential character.
This includes:-
Trade secrets
Literary and artistic secrets
Personal secrets
Public and Government secrets
In case of confidential information relating to trade secrets, the information must be such that the owner must believe that the release of which would be injurious to the owner or advantageous to his rivals or others. Further, the owner must believe that the information is confidential and secret and such belief must be reasonable. Moreover, the information must be judged in the light of the usage and practices of the particular industry or trade concerned.
The essential elements to cause an action for breach of confidence are:-
that the information was of confidential nature
that it was communicated in circumstances importing an obligation of confidence and
that there was an unauthorised use of the information
Courts in India have protected misuse of confidential information either as a violation of contract or as a violation of intellectual property rights. Confidential information can be protected under common law by entering into oral as well as written agreements by the concerned parties.
