Ezystay Systems Pty Ltd v Link 2 Pty Ltd [2015] NSWSC 1105

Ezystay Systems Pty Ltd v Link 2 Pty Ltd [2015] NSWSC 1105

The defendants breached the Deed of Settlement’s covenants to return and delete the plaintiffs’ confidential documents and manuals, and further breached clause 8 by copying and using confidential information (including software) in Link 2’s competing business. The Business Manual, Systems Manual, Software, and Software Manual were confidential under the Deed; hybrid documents and software features were directly copied or adapted by the defendants while Mr Riches was still a director. These actions also constituted breaches of fiduciary and statutory directors’ duties under the Corporations Act. However, the claim regarding 'Trade Dress' copying failed as the features were not sufficiently...

Jurisdiction
Australia
Judgment Date
10 August 2015
Procedural Posture
Equity Proceeding / Judgment After Trial
Outcome
Plaintiffs succeeded in their claims regarding confidential information, software, manuals; claim on Trade Dress failed. Form of final relief (including injunctions/orders) to be determined after further submissions or by consent.
Legal Topics
['confidential Information' "directors' Duties" 'breach of Contract' 'copyright' 'fiduciary Duties']
['equity' 'commercial Law' 'intellectual Property' 'company Law'] ['confidential Information' "directors' Duties" 'breach of Contract' 'copyright' 'fiduciary Duties']

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Procedural Posture

Equity Proceeding / Judgment After Trial

Legal Issues

  1. 1 ['Whether the defendants breached the Deed of Settlement by failing to return or delete confidential information and documents of the plaintiffs' "Whether the copied business manuals, systems manuals, and software contained 'Confidential Information' under the Deed" "Whether defendants misused confidential information or breached fiduciary/statutory directors' duties" "Whether the accommodation 'Trade Dress' was copied and protected by intellectual property principles" "Whether the software and software manual were confidential and copied for Link 2's business"]

Ratio Decidendi

The defendants breached the Deed of Settlement’s covenants to return and delete the plaintiffs’ confidential documents and manuals, and further breached clause 8 by copying and using confidential information (including software) in Link 2’s competing business. The Business Manual, Systems Manual, Software, and Software Manual were confidential under the Deed; hybrid documents and software features were directly copied or adapted by the defendants while Mr Riches was still a director. These actions also constituted breaches of fiduciary and statutory directors’ duties under the Corporations Act. However, the claim regarding 'Trade Dress' copying failed as the features were not sufficiently...

Court Disposition

Plaintiffs succeeded in their claims regarding confidential information, software, manuals; claim on Trade Dress failed. Form of final relief (including injunctions/orders) to be determined after further submissions or by consent.

Orders

  • []