Update On The "Inevitable Disclosure" Doctrine In Canada

The doctrine of "inevitable disclosure" is based on the proposition that an employee who performs the same or similar work for a direct competitor of a former employer, will inevitably use or disclose confidential information and trade secrets in the course of performing his/her duties for the new employer. Although this doctrine has been accepted in several U.S. cases such as PepsiCo, Inc. v. Redmond, 54 F. 3d 1262 (7th Cir. 1995) (PepsiCo), it has not received similar treatment in the common law courts in Canada.

In PepsiCo, the Court allowed an injunction preventing a PepsiCo general sales manager from assuming similar duties with PepsiCo's chief competitor. The sales manager had detailed knowledge of PepsiCo's marketing plans for the coming year and was set to be involved in marketing decisions at his new employer. PepsiCo did not contend that any trade secrets were actually stolen, but rather asserted that in his new role the misappropriation of PepsiCo's