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Case law: court clarifies extent of protection for confidential information

Businesses should make sure they are protecting their confidential information as far as practicable, following a recent ruling.

Legal Alert

This update was published in Legal Alert - May 2014

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

In a recent case, the Court of Appeal looked at whether the obligations under a confidentiality agreement continued to apply after the parties signed a second agreement which did not contain any such express obligations.

Rentokil possessed confidential information relating to customers and services and appealed an injunction preventing it from contacting customers of another company which provided the information. That company, UK Hygiene, had terminated the second agreement that had been signed so that it could deal directly with the customers.

Rentokil then approached UK Hygiene's customers to provide them with services using confidential information under the initial agreement.

The Court upheld the decision of the earlier court that the confidentiality obligations continued to apply in respect of protecting trade secrets. This was necessary to protect the wrongful use of the confidential information.

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