Skip to content

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

Vihaan Analytics Pvt Ltd's employee Priya, bound by a confidentiality clause, leaves and joins a rival, Zenith Data. Vihaan alleges she took its client pricing lists. Zenith argues Priya merely used her general skills and knowledge. Which approach would a court most likely adopt in deciding the claim?

A court would separate specific confidential information, like Vihaan's client pricing lists, which is protectable, from Priya's general skill, knowledge and experience, which she may use freely. Confidentiality covenants are enforceable, no registration is required, and blanket protection of all knowledge would operate as an unlawful restraint of trade.

  1. ATreat all knowledge Priya acquired at Vihaan as protected confidential information
  2. BDistinguish specific confidential information such as the pricing lists from general skill, knowledge and experience, which she may freely useCorrect
  3. CReject the claim because there is no registered trade secret
  4. DHold that the confidentiality clause is void as a restraint of trade

Explanation

Courts distinguish genuinely confidential information, such as specific client lists and pricing, from an employee's general skill and experience, which she may use after leaving. Confidentiality clauses protecting specific secrets are not treated like non-competes and are enforceable. No registration is needed, and protecting all knowledge would effectively restrain trade.

Did you get it right without looking?

One question tells you little. A timed set on Protection of Trade Secrets shows your real accuracy, how long you take and where you lose marks.

Practise Protection of Trade SecretsFree diagnostic mock

More Protection of Trade Secrets questions