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Petersons Global Sales Ltd & Anor v Peterson & Anor
12 Jun 2007, D King, AA 173A/07, (8 pages)
INJUNCTION – RESTRAINT OF TRADE - Application for injunctions to prevent respondents from displaying prototype sawmill at Hamilton Field Days – Urgent hearing to deal with injunctions - Authority issued earlier oral determination - Reasons for earlier oral determination - Applicants (“PGSL”) and (“P&B”) also sought penalties, enquiry into damages, and removal of references from respondents’ website - Applicants claimed owned rights in prototype – Claimed respondents breached employment agreements by developing it in company time using company resources or in competition with applicants, used confidential information and trades secrets – PGSL agreed to source all sawmill products from second respondent's company (“PPSSL”) – PPSSL defaulted on agreement - All designs, trademarks and patents transferred to PGSL – Pursuant to further agreement, patents in first respondent's name transferred to P&B – Following liquidation of PPSSL, respondents worked for applicants – Employment agreements had confidentiality and restraint of trade clauses - First respondent had designed prototype, and second respondent continued its redevelopment until employment terminated – Respondents continued work on prototype and lodged patent applications in own names – First respondent told to cease private work for own benefit, and subsequently resigned – Authority found, given existence of agreements, clear argument PGSL owned intellectual property, not respondents – Whether work on prototype carried out in private capacity or as employees, and whether conflict of interest, at issue – Arguable case – Not granting injunction meant prototype in public arena without having been tested - May damage applicants’ reputations and have deleterious effect on sales – Competitors would gain access to secret information - Applicants risked permanent detriment - Balance of convenience and overall justice of case favoured applicants - Injunctions ordered – Certain references agreed to be removed from website
Result: Application granted ; Orders accordingly ; Costs reserved
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