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CS Professional · Intellectual Property Rights - Law and Practice · Protection of Trade Secrets

Kabir Foods claims its customer list was misappropriated by a former sales manager. To succeed in an action for breach of confidence, which element must Kabir Foods establish?

Kabir Foods must show the information was confidential in nature and was used or disclosed in breach of an obligation of confidence. Registration, patent-style novelty or proof of profit is not required to establish liability, though profit may matter for the monetary remedy.

  1. AThat the information was registered with the Controller of Patents
  2. BThat the information had the necessary quality of confidence and was disclosed or used in breach of an obligation of confidenceCorrect
  3. CThat the defendant earned a profit from using the information, regardless of any obligation
  4. DThat the information was novel and inventive over prior art

Explanation

The classic test requires confidential information, circumstances importing an obligation of confidence, and unauthorised use or disclosure. Registration is not available for trade secrets, and proof of profit is relevant only to remedies. Novelty and inventive step are patent requirements, not needed for trade secret protection.

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