Spence v Oberthur Technologies Pty Ltd

Spence (the applicant) sought to restrain Oberthur Technologies Pty Ltd (the respondent) from continuing to use certain confidential information and trade secrets relating to the design and manufacture of smart cards. The applicant alleged that the respondent had breached an express confidentiality agreement and an implied term of confidentiality in a joint venture agreement. The application was heard in the Federal Court of Australia.

The primary legal issues before the court were whether the respondent had breached its obligations of confidentiality, and if so, whether an injunction should be granted to prevent further use of the confidential information. Specifically, the court had to determine the scope of the confidentiality obligations, whether the information in question was indeed confidential and a trade secret, and whether the respondent's actions constituted a breach of those obligations.

Emmett J found that the respondent had breached its express and implied obligations of confidentiality. His Honour reasoned that the information provided by the applicant was clearly confidential and constituted a trade secret, given its commercial value and the measures taken to protect it. The court applied the principles of equity relating to breach of confidence, noting that the information was imparted in circumstances importing an obligation of confidence, and that the respondent had made unauthorised use of that information. The court also considered the terms of the joint venture agreement and the express confidentiality clause within it.

The court granted an injunction restraining the respondent from using or disclosing the confidential information and ordered the respondent to deliver up or destroy all documents containing the confidential information.