Ainsworth Game Technology Ltd v Michkoroudny

Ainsworth Game Technology Limited brought an action against Michkoroudny, their former employee, for breaching confidentiality and misappropriating confidential information. The court was tasked with determining whether Michkoroudny's actions constituted a breach of the implied term of confidentiality in his employment contract and if he had misused confidential information to obtain payouts from gaming machines. Ainsworth Game Technology, a prominent Australian company in the gaming industry, employed Michkoroudny as a tester of gaming machines. During his employment, Michkoroudny gained access to confidential information, including game programming and payout strategies. After leaving the company, he allegedly used this information to obtain payouts from gaming machines, which led to the present legal action.

The primary legal issues before the court were whether Michkoroudny's actions amounted to a breach of the implied term of confidentiality in his employment contract and if he had misused confidential information. The court considered whether Michkoroudny's use of the confidential information to obtain payouts constituted a misuse of confidential information under Australian law. The court examined the terms of Michkoroudny's employment contract, the nature of the confidential information, and whether there was a reasonable expectation of confidentiality in the circumstances.

The court found that Michkoroudny had breached the implied term of confidentiality in his employment contract. It held that he had misused confidential information by using it to obtain payouts from gaming machines. The court acknowledged the importance of protecting confidential information in the gaming industry and emphasised the need for employees to respect their obligations of confidentiality. The court granted Ainsworth Game Technology an injunction against Michkoroudny, preventing him from using or disclosing the confidential information in any way. Additionally, the court ordered Michkoroudny to pay restitution in the form of the payouts he had obtained from the gaming machines. The court held that the misuse of confidential information caused direct harm to Ainsworth Game Technology, justifying the award of restitution.