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ARTICLE · 03 JULY 2013

No Liability For Misuse Of Confidential Information Without Knowledge

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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An employee who set up a competing business which, unknown to her, used her previous employer’s confidential information was not liable for that misuse.

United KingdomIntellectual Property

Mrs Sig and Mr Larsen left Vestergaard to set up a competing company, along with Dr Skovmand (the previous Head of Product Development at Vestergaard, who was a consultant rather than an employee). The competing product was insecticidal mosquito nets. In other proceedings, the courts had held that Dr Skovmand was liable for misuse of Vestergaard's confidential information, and that Mrs Sig was also liable even though she was not aware that the new company had misused the confidential information – she had never been involved in product development and had no access to the relevant database.

The Court of Appeal allowed Mrs Sig's appeal, so Vestergaard appealed to the Supreme Court.

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