1. JURIS TECHNOLOGIES SDN. BHD. (Co. No.: 618486-X) 2. NATSOFT (M) SDN. BHD. (Co. No.: 369362-H) 1. FOO TIANG SIN (NRIC No.: 820814-05-5275) 2. CHONG HAU YIP (NRIC No.: 890806-05-5375) 3. ENG SHI PING (NRIC No.: 850228-10-5441) 4. YOW YIK S

1. JURIS TECHNOLOGIES SDN. BHD. (Co. No.: 618486-X) 2. NATSOFT (M) SDN. BHD. (Co. No.: 369362-H) 1. FOO TIANG SIN (NRIC No.: 820814-05-5275) 2. CHONG HAU YIP (NRIC No.: 890806-05-5375) 3. ENG SHI PING (NRIC No.: 850228-10-5441) 4. YOW YIK S

On the facts the court found that the 1st–5th defendants breached employment contracts (outside employment prohibition, confidentiality and implied duty of fidelity), owed and breached fiduciary duties, committed breach of confidence; the 6th defendant infringed the 1st plaintiff's copyright and the 1st–5th defendants caused that infringement; the corporate veil of the 6th defendant was pierced; appropriate remedies granted including judicial assignment of the 6th defendant's programs to the 1st plaintiff, a three-year springboard injunction, perpetual mandatory and prohibitory injunctions, an inquiry for damages and an award of RM600,000 as global statutory/additional/exemplary/punitive...

Citation
22IP-53-10/2015 (Mahkamah Tinggi)
Parties
Plaintiff: JURIS TECHNOLOGIES SDN. BHD.; Plaintiff: NATSOFT (M) SDN. BHD.; Defendant: FOO TIANG SIN; Defendant: CHONG HAU YIP; Defendant: ENG SHI PING; Defendant: YOW YIK SHUEN; Defendant: FONG HING YEH; Defendant: PHI ORION SDN. BHD.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
6 September 2017
Case Number
22IP-53-10/2015 (Mahkamah Tinggi)
Procedural Posture
Civil Suit — Intellectual Property, Employment and Tort / Judgment After Trial (final Judgment)
Outcome
Plaintiffs' claims allowed in full; Defendants' counterclaim dismissed.
Legal Topics
Copyright Infringement, Breach of Confidence, Fiduciary Duties of Employees, Constructive Trust, Piercing the Corporate Veil, Springboard Injunction, Breach of Employment Contract, Unlawful Interference With Business, Conspiracy to Injure
Source Language
Malay/English
Intellectual Property Employment Law Contract Law Equity and Fiduciary Duties Tort Law Company Law Injunctions Copyright Infringement +8 more

Case Brief

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Parties

JURIS TECHNOLOGIES SDN. BHD.

Plaintiff

NATSOFT (M) SDN. BHD.

Plaintiff

FOO TIANG SIN

Defendant

CHONG HAU YIP

Defendant

ENG SHI PING

Defendant

YOW YIK SHUEN

Defendant

FONG HING YEH

Defendant

PHI ORION SDN. BHD.

Defendant

Procedural Posture

Civil Suit — Intellectual Property, Employment and Tort / Judgment After Trial (final Judgment)

Legal Issues

  1. 1 Whether employees may use their 'free time' to do freelance work without breaching employment contracts or fiduciary duties
  2. 2 Whether employees tasked with creating and exploiting employer confidential information owe fiduciary duties in respect of that information
  3. 3 Whether court may order judicial assignment of IP created by ex-employees who misappropriated confidential information

Ratio Decidendi

On the facts the court found that the 1st–5th defendants breached employment contracts (outside employment prohibition, confidentiality and implied duty of fidelity), owed and breached fiduciary duties, committed breach of confidence; the 6th defendant infringed the 1st plaintiff's copyright and the 1st–5th defendants caused that infringement; the corporate veil of the 6th defendant was pierced; appropriate remedies granted including judicial assignment of the 6th defendant's programs to the 1st plaintiff, a three-year springboard injunction, perpetual mandatory and prohibitory injunctions, an inquiry for damages and an award of RM600,000 as global statutory/additional/exemplary/punitive...

Court Disposition

Plaintiffs' claims allowed in full; Defendants' counterclaim dismissed.

Orders

  • Pierce the corporate veil of PHI Orion Sdn. Bhd. and hold Foo Tiang Sin, Chong Hau Yip, Eng Shi Ping, Yow Yik Shuen and Fong Hing Yeh jointly and severally liable for the company's liability
  • Judicial Assignment of the 6th Defendant's (PHI Orion) software programs to the 1st Plaintiff (Juris Technologies Sdn. Bhd.)