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Developer granted injunction to protect confidential information

Posted: 30th March 2016   In: Business Employment, Individual Employment

A software developer has been granted an injunction to prevent a former employee passing on confidential information to a rival business.

The developer specialised in computer gaming software for use in non-gaming industries. The employee had joined the company as a programmer and later moved to the sales department.

There were restrictive covenants in his employment contract stating that he could not pass on sensitive company information to other firms.

He resigned in 2015 and accepted an offer from a competitor who was developing a similar product. Following a period of gardening leave, he was due to start his new employment in a few days.

The software developer submitted that the employee would inevitably convey confidential information to the competitor in breach of the restrictive covenants.

The court held that there was a serious issue to be tried and it was conceded by the employee that damages would not be an adequate remedy. The developer feared damage to its business including disruption and diversion of opportunities.

However, there would be real hardship suffered by the employee and his family if he was not able to start work.

The judge said that courts generally found, on balance, in favour of those who sought to protect their business interests. He granted the developer an interim injunction but ordered that a speedy trial should take place to consider the issues in more detail.

Please contact Sarah Liddiard if you would like more information about the issues raised in this article or any aspect of employment law and protecting your business.

Posted by: Sarah Liddiard
Corporate Commercial
Luton Office