In the M/s. Bizotico v. Mohammed Sajjad case, the Karnataka High Court issued a nuanced ruling balancing business confidentiality and employee rights. While the court upheld the plaintiff’s concerns about the misuse of sensitive data, it dismissed the defamation claim due to insufficient evidence. The decision underscores the court’s careful approach to protecting both business interests and employee freedoms. Continue Reading Karnataka HC Balances Employee Rights and Business Confidentiality in Bizotico Case
In a significant ruling, the Delhi Civil Court ordered a former employee to pay Rs. 1 lakh for breaching a two-year training agreement by resigning early. The court, however, denied the injunction on the misuse of confidential information due to insufficient evidence. Continue Reading Court Orders Former Employee to Pay Rs. 1 Lakh for Early Resignation
Original Date of Publication: November 26th, 2009
Please note that the Do's and Don'ts provided hereunder are broad and non-exhaustive guidelines. Kindly consult a lawyer for specific advise. Do’s
1. Define the meaning of the term Confidential Information to cover all kinds of information that may be disclosed. Exclusions to confidential information may be included within the definition.
2. The purpose for which confidential information is provided must be lucidly stated in the agreement.
3. The parties permitted to access the confidential information must…
First Publication Date: 15th December 2010
Agreements that restrain an employee from working with a competitor or carrying out a competing business are called Non-compete agreements. Such agreements, when reasonable are considered to be valid in countries such as USA and UK. However, under the Indian law Non-compete agreements are valid to a very limited extent because agreements in restraint of trade or employment are void under Section 27 of the Indian Contract Act. The section reads as follows:"27. Agreement in…
First Publication Date: 21st December 2009
Trade Secret in India is not protected under any specific law but Indian Courts from time to time have recognized that confidential business information, such as customer lists, details of suppliers, pricing policies, product launch time-schedules, management marketing, know-how, designs, drawings, model, specifications, surface data, notes, improvements, technical information and so on may qualify as trade secrets.
The jurisprudence that has developed in relation to trade secrets and confidential information is by way…
First Publication Date: 25th November 2009
Intellectual Property protection provides business and competitive advantage to a company. While IP is important for all companies, its value for A Start Up Company, especially, a technology or knowledge based company, is very high. In addition to providing business and competitive advantage, IP can play a very important role in enabling a Start Up company to build business relationships, raise funds, face cut throat competition and so on. In the light of…
The row between Arnab Goswami and The Times Group (Bennett Coleman & Co.) elucidates some problems an employee turned entrepreneur may face from her/his erstwhile employer. Arnab Goswami was the star of Times Now, a television news channel, and his catch phrase, "The Nation Wants to Know," is extremely popular, to say the least. At the end of 2016, Goswami decided to quit Times Now on what appears to be not very amicable terms. In the first week of May…
Clearing IP Risks is very important before starting a business. A mistake with respect to this can kill a start-up. Some basic IP clearance steps to be taken by all start-ups and entrepreneurs are: Patent Risk Clearance Check if your business idea is the subject of any IP/Patent protection by another person or entity. Perform a patent search to check if any patents cover any aspect of your business. If your business or technology falls within…
This question came up in an Employer-Employee trade secret dispute before a California Court. David Oakes was working in a sales position with a company called Cellular Accessories under an Employment Agreement with a clause to safeguard the company's trade secrets. As a part of his employment with Cellular Accessories, David established more than nine hundred contacts on LinkedIn and maintained the list on his computer. The list was updated whenever a new contact was made.
On leaving the company,…
The possibility of protection and a company's capability to protect a secret is indeed an important factor to be considered while defining the nature of protection. Though many factors may be in favor of trade secret protection over patent protection, the incapability of an organization to maintain secrecy is a very important factor and may shift the balance.
The kind of information sought to be safeguarded, measures required for protection, nature of business, organization's stature, and so on play a very…