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

Zenith Tech sues an ex-employee for using a customer database. The employee argues that the names are available from public directories and he compiled them himself from memory. In the approach of Indian courts, as in Homag India v Ulfath Ali Khan and similar cases, which fact is most decisive in the firm's favour?

The deciding fact is that the compiled database with customer preferences and pricing was not public and was built by the firm with effort and kept confidential. Such compilations may be protected even when single names are public.

  1. AThe compiled database with customer preferences and pricing was not public and was developed by the firm with effort and confidential handlingCorrect
  2. BThe employee memorised the names
  3. CThe database was stored on a computer
  4. DThe firm has many customers

Explanation

Courts distinguish general knowledge and skill of an employee from confidential compilations. Even if individual names are public, a compiled database containing preferences and pricing, kept confidential, can qualify for protection. Memory or storage medium does not decide the issue.

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