Courts Act To Protect Business Interests

Article by Rebekah Fryer, Associate

In two recent decisions, Courts have protected the business interests of employers by awarding damages against former employees who misused confidential information and intellectual property during, or after the end of their employment. In one case, damages were awarded in the amount of $212,000.

Worsening economic conditions may see an increase in this type of action by employers seeking to protect their business from any threat. In order to succeed in many of these types of claims, employers must have appropriate and enforceable employment contracts in place to protect, for example, their confidential information and intellectual property. Depending on the nature of a business, a restraint of trade clause preventing employees from competing with their employer and soliciting their clients after the end of their employment, may also be appropriate.