Pexmart CC and Others v H. Mocke Construction (Pty) Ltd and Another (159/2018) [2018] ZASCA 175; [2019] 1 All SA 335 (SCA); 2019 (3) SA 117 (SCA); 2018 BIP 345 (SCA); [2018] 2 CPLR 440 (SCA) (3 December 2018)

Pexmart CC and Others v H. Mocke Construction (Pty) Ltd and Another (159/2018) [2018] ZASCA 175; [2019] 1 All SA 335 (SCA); 2019 (3) SA 117 (SCA); 2018 BIP 345 (SCA); [2018] 2 CPLR 440 (SCA) (3 December 2018)

The Supreme Court of Appeal held that the appellants had unlawfully used the respondents' confidential information and trade secrets in their pipelining process. The evidence demonstrated that the process and machine used by the appellants were substantially similar to those protected by the respondents' licence, and the proprietary knowledge was not in the public domain. The court found that the respondents' information had economic value, was developed over years, and was only known to a restricted group. The lack of patent protection did not negate the existence of protectable confidential information. The appellants' failure to call Mr Henn, a material witness, justified an adverse...

Citation
[2018] ZASCA 175
Parties
Appellant: Pexmart CC; Appellant: Pexmart Lined Pipe Systems (Pty) Ltd; Appellant: Marius Johannes Henn; Respondent: H. Mocke Construction (Pty) Ltd; Respondent: Hein Mocke
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
3 December 2018
Case Number
159/2018
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria
Outcome
Appeal dismissed with costs, including the costs of two counsel.
Judges
Navsa, Lewis, Mocumie, Molemela, Makgoka
Legal Topics
Unlawful Competition, Misuse of Confidential Information, Trade Secrets, Reverse Engineering, Licensing Agreements
Commercial and Corporate Intellectual Property Unlawful Competition Misuse of Confidential Information Trade Secrets Reverse Engineering Licensing Agreements

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 9 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Pexmart CC

Appellant

Pexmart Lined Pipe Systems (Pty) Ltd

Appellant

Marius Johannes Henn

Appellant

H. Mocke Construction (Pty) Ltd

Respondent

Hein Mocke

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria

Legal Issues

  1. 1 Whether the appellants unlawfully used confidential information and trade secrets of the respondents in their pipelining process.
  2. 2 Whether the processes and machines used by the appellants were identical or dissimilar to those protected by the respondents' licence.
  3. 3 Whether protectable confidential information existed in respect of the Sureline/Polymeric deforming process.

Ratio Decidendi

The Supreme Court of Appeal held that the appellants had unlawfully used the respondents' confidential information and trade secrets in their pipelining process. The evidence demonstrated that the process and machine used by the appellants were substantially similar to those protected by the respondents' licence, and the proprietary knowledge was not in the public domain. The court found that the respondents' information had economic value, was developed over years, and was only known to a restricted group. The lack of patent protection did not negate the existence of protectable confidential information. The appellants' failure to call Mr Henn, a material witness, justified an adverse...

Court Disposition

Appeal dismissed with costs, including the costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.