What is the main case concerning trade secrets requirements?
Coco v Clark
Facts of Coco v Clark
C designed Moped and negotiated with D to manufacture it
Negotiations broke down, and D manufactured and sold Moped for himself
Claim failed: info likely to be in public domain
What are the 3 basic requirements for trade secret protection to arise?
- Info must have necessary quality of confidence about it
- info must have been given in circumstances imposing obligation of confidence
- must have been unauthorised use of the info to the detriment of party communicating it
Where is a trade secret defined?
Art 39(2) TRIPS Agreement 1995 Art 1 and 2 Trade Secrets Directive 2016
How is a trade secret defined?
info Not generally known among or readily accessible to people within circles that normally deal with that kind of information
information that has commercial value because it is secret
information that is subject to reasonable steps to keep it secret
What are the main rules concerning the necessary quality? (5)
Must be identifiable
must be more than trivial
must not be immoral
must not be vague
must not be in the public domain
What is the main case concerning identification?
PA Thomas v Mould
owner of info must make it clear and certain it was that information intended to be protected
Which cases concern trivial information?
Coco v Clark - info must be of sufficient gravity
Douglas v Hello - “trivial” is subjective
Which case concerns immoral information?
Stephens v Averay - matters of “grossly immoral tendency” not protected
What are the main two cases concerning vague information?
De Maudsley v Palumbo
Fraser v Thames TV
What are the facts of De Maudsley v Palumbo?
C shared various ideas for a nightclub, including:
- large and decorated in “high tech” style”
- different areas for dancing, socializing and VIP lounge
- host renounced DJs
held: action dismissed because ideas were too vague, and when combined, lacked originality
What are the facts of Fraser v Thames TV?
Girl rock band wanted to create a reality TV show about themselves, with fictitious elements
held to be commercially attractive and the idea was sufficiently well developed to be protected
Which cases concern the public domain? (3)
Coco v Clark
Terrapin v Builders supply Co
Ackroyds v Islington Plastics
Which case concerns the springboard doctrine? What are the facts?
Terrapin v Builders Supply Co
- D obtained information about manufacturing of portable buildings, and used it for himself
- Springboard doctrine states that those who obtained info in confidence, cannot use it to the detriment of the owner, even where the information is already in the public domain
True or False: encrypted information that requires reverse engineering is considered to be in the public domain
True
Which case concerns reverse engineering / encryption?
Ackroyds v Islington Plastics
What rule is established in Ackroyds v Islington Plastics?
Where reverse engineering requires substantial work to acquire the information, the information is not considered to be in the public domain
In which 3 ways does obligation of confidence arise?
- direct
- indirect
- employment
examples of intrinsic, direct obligation of confidence? (4)
- doctor / patient
- solicitor / client
- director / company
- husband & Wife - Argyll v Aargyll
What is the test applied to determine whether there is an inherent, direct obligation of confidence?
Would the reasonable person standing in the shoes of the recipient realise the info was imparted in confidence?
Coco v Clark
In what circumstances does no direct obligation of confidence arise?
blurting information out in public - coco v clark
informal, social setting - de maudsley v Palumbo
In what circumstances does an indirect relationship arise?
- recipient aware of the confidential nature
- subsequent discovery - English and American v Herbert Smith
3, Bona fide purchaser - vaelo vision v flexible lamps
What is the main rule regarding strangers and indirect relationships? Case?
obligation arises where recipient knew, or ought reasonably to have known, that the info was confidential
Douglas v Hello!
What is the main case regarding employment in indirect relationships?
Faccenda chicken v Fowler
