Incellmed Corporation is in the business of developing genetically engineered pharmaceutical products. It uses a number of highly technical secret processes in its business. Martin worked for the company for five years and then left after an argument
with one of the vice presidents of the company. He then went to work for one of Incellmed's competitors, which has begun to market similar products that seem to have been produced using the secret processes developed and used by Incellmed. What, if any, recourse does Incellmed have under the circumstances?
Martin seems to have misappropriated trade secrets belonging to Incellmed. An employee is under a duty of loyalty to his employer, which includes the nondisclosure of trade secrets to competitors. It is also wrongful for a competitor to obtain vital trade secret information from an employee. If there was a contractual restriction on disclosure of information by an employee after termination of employment, then Incellmed may enforce that provision. In the absence of a contractual restriction, an employee is under no duty upon termination of his employment to refrain from competing or working for a competitor. However, the employee commits a tort by divulging secret information. Incellmed may obtain money damages for the misappropriation of trade secrets and may also seek an injunction to prevent the competitor from continuing to use the trade secrets. If any of the processes are covered by the patent laws, then Incellmed will have to proceed based on the remedies in the patent laws rather than on those covered by misappropriation of trade secrets.
You might also like to view...
Which of the following does not represent a liability?
a. An obligation for estimated income taxes payable b. Interest that has accrued on a bank loan c. An obligation to pay for goods purchased, payable one year after purchase d. An obligation for future purchases of goods
________ is a doctrine that raises a presumption of negligence and switches the burden to the defendant to prove that he or she was not negligent.
A. Res ipsa loquitur B. Negligence per se C. The doctrine of proximate cause D. The doctrine of comparative negligence
In order to achieve a peaceful coexistence in its community, an organization must be able to fulfill its business objectives, even if some community members rightfully object to it
Indicate whether the statement is true or false
Unemployment is lower in Japan than in France
Indicate whether the statement is true or false.