Trade Secrets: The Value In Enforcement

A trade secret or confidential information can be enforced against a third party which has made or is likely to make unauthorised use of the information to the detriment of the holder, if the holder has taken certain measures to protect the information. The UK Courts have wide discretion to order an injunction, damages or other remedies.

For example, in Derma Med Limited v Ally¹the Court of Appeal considered that an interim injunction should be granted against the defendant, Dr Ally.

Dr Ally a leading aesthetics practitioner sold his business in relation to cosmetic fillers to Derma Med. The share purchase agreement contained restrictions on Dr Ally not to compete with Derma Med and not to misuse its confidential information. Dr Ally agreed to remain as an employee at Derma Med following completion.