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Total entries in this category: Published On: Aug 03, 2007 10:45 AM |
Confidential information and innocent third partiesIs it a complete defence to an action for
misuse of confidential information that the defendant recipient obtained it as a
bona fide purchaser for value without notice of its status as confidential
information or the breach?
After a very extensive review of the
authorities, Greenwood J in
Retractable Technologies v
Occupational and Medical Innovations
[2007] FCA 545 considered that it may not
be.
The case was an application for leave to appeal from a decision of Dowsett J [2006] FCA 1814 refusing preliminary discovery on the grounds that being a bona fide purchaser for value was a complete defence. Greenwood J extensively analysed the authorities such as Franklin v Giddens, Wheatley v Bell and Fraser v Evans, noting that most of the cases where innocent third parties had been restrained after notice did not involve bona fide purchasers for value. His Honour considered that it was at least arguable that the purchaser could be restrained, after receiving notice of the breach, at least in respect of products obtained pursuant to contracts entered into after receiving notice. His Honour ultimately refused leave to appeal, however, as he found that the alleged confidential information, and its alleged misuse, were not adequately established. His Honour's decision is important also, therefore, for the importance it places on precisely identifying the information alleged to be confidential. Posted: Monday - April 23, 2007 at 06:04 PM | |