H Mocke Construction (Pty) Ltd and Another v Pexmart CC and Others (58201/2014) [2017] ZAGPPHC 718; 2017 BIP 212 (GP) (13 November 2017)

H Mocke Construction (Pty) Ltd and Another v Pexmart CC and Others (58201/2014) [2017] ZAGPPHC 718; 2017 BIP 212 (GP) (13 November 2017)

The court found that the respondents' pipe folding process, as evidenced by the deformer machine photographed at their premises, is identical in substance to the Sureline process licensed to the applicants. The operational know-how, including the method of folding, taping, and troubleshooting during the lining process, constitutes protectable confidential information and trade secrets, acquired by the applicants under a license from PPTC and transferred through on-site training. The third respondent, as a former employee, had intimate knowledge of this information, and the respondents failed to provide credible evidence that their process was independently developed or based on public...

Citation
[2017] ZAGPPHC 718
Parties
Applicant: H Mocke Construction (Pty) Ltd; Applicant: Hein Mocke; Respondent: Pexmart CC; Respondent: Pexmart Lined Pipe Systems (Pty) Ltd; Respondent: Marius Johan Nes Henn
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 November 2017
Case Number
58201/2014
Procedural Posture
Civil Application / Hearing of Oral Evidence on Referred Issues
Outcome
All four issues referred for oral evidence are determined in favour of the applicants.
Judges
Louw
Legal Topics
Confidential Information, Unlawful Competition, Trade Secrets, Reverse Engineering, Licensee Rights, Restraint of Trade
Commercial and Corporate Intellectual Property Delict Confidential Information Unlawful Competition Trade Secrets Reverse Engineering Licensee Rights +1 more

Case Brief

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Parties

H Mocke Construction (Pty) Ltd

Applicant

Hein Mocke

Applicant

Pexmart CC

Respondent

Pexmart Lined Pipe Systems (Pty) Ltd

Respondent

Marius Johan Nes Henn

Respondent

Procedural Posture

Civil Application / Hearing of Oral Evidence on Referred Issues

Legal Issues

  1. 1 Whether the respondents' deforming processes are identical or dissimilar to the Sureline and/or Polymeric deforming process licensed to the applicants.
  2. 2 Whether the Sureline and/or Polymeric deforming process, its machine(s), intellectual property, techniques, on-site training, technology and know-how are protected by the license awarded to the applicants.
  3. 3 Whether protectable confidential information exists in respect of the Sureline and/or Polymeric deforming process and associated know-how.

Ratio Decidendi

The court found that the respondents' pipe folding process, as evidenced by the deformer machine photographed at their premises, is identical in substance to the Sureline process licensed to the applicants. The operational know-how, including the method of folding, taping, and troubleshooting during the lining process, constitutes protectable confidential information and trade secrets, acquired by the applicants under a license from PPTC and transferred through on-site training. The third respondent, as a former employee, had intimate knowledge of this information, and the respondents failed to provide credible evidence that their process was independently developed or based on public...

Court Disposition

All four issues referred for oral evidence are determined in favour of the applicants.

Orders

  • It is declared that the respondents' deforming process is identical to the Sureline and/or Polymeric process licensed to the applicants.
  • It is declared that protectable confidential information exists in respect of the Sureline and/or Polymeric deforming process and associated know-how.