13 August, 2016

TOPIC 3 PUBLICATION OF INFORMATION – CONFIDENTIAL INFORMATION

TOPIC 3 PUBLICATION OF INFORMATION – CONFIDENTIAL INFORMATION                      

LEARNING OUTCOMES    
By the end of this topic, you should be able to:    
1.  Explain what is confidential information;    
2.  Identify types of confidential information;    
3.  Describe the importance of protecting certain kinds of information; and    
4.  Discuss restrictions to keep certain information secret.     

INTRODUCTION            

Figure 3.1: Information gained through newspaper articles (media). 

Information   has   become   increasingly   important   and   is   regarded   as   a   property,  especially in the media world where information is a subject of sale (see Figure  3.1).  

However,      not    all  information     can    be   bought    and    sold.   In   certain  circumstances,   the   law   imposes   a   duty   on  the   recipient   of   information   to   keep  certain information confidential. This duty arises where there is obligation in the  form of an express or implied term in an employment or other contract or when  the information possesses a confidential character.    

3.1          WHAT IS CONFIDENTIAL INFORMATION?  
Did you know that confidential information law protects only information that is  secret? If the information is already in the public domain, it is no longer protected  by this area of law. So, what is confidential information? The case of Electro Cad  Australia Pty Ltd & 2 Ors v Mejati RCS Sdn Bhd & Ors [1998] 3 AMR 2555; [1998]  3   CLJ   Supp   196   (HC)   below   explains   what   confidential   information   is   (Juriah  Abdul Jalil, 2003):     Electro Cad Australia Pty Ltd & 2 Ors v Mejati RCS Sdn Bhd & Ors [1998] 3    AMR 2555; [1998] 3 CLJ Supp 196 (HC)  Confidential   information   is   generally   information   which   is   the   object   of   an    obligation of confidence and is used to cover all information of a confidential    character. This includes:    
1.  Trade secrets;    
2.  Literary and artistic secrets;    
3.  Personal secrets; and    
4.  Public and government secrets.                                             

The   law   of   Intellectual   Property   by   Staniforth   Ricketson   sets   out   a   useful    summary at p, 822 of the factors relevant to determining whether a given body    of information is confidential. They are:    
1.  The   extent   to   which   the   information   is   known   outside   his   (the   owner’s)        business;    
2.  The extent to which it is known by employees and others involved in his        business;    
3.  The    extent    of  measures     taken   by  him     to  guard    the   secrecy   of  the        information;    
4.  The value of the information to him and his competitors; and    
5.  The    amount     of  effort  or  money     expended     by   him   in  developing     the        information.     The ease or difficulty with which the information could be properly acquired    or duplicated by others (i.e. by their independent endeavours).   

3.2          TYPES OF CONFIDENTIAL INFORMATION   There are four types of confidential information as shown in Figure 3.2.                           

Figure 3.2: Types of confidential information   We   will   discuss   further   the   types   of   confidential   information   in   the   following  subtopics.                                      

3.2.1          Trade Secrets  
According       to  Juriah    Abdul    Jalil  (2003),   trade   secrets   refer   to  confidential  commercial       information     or   information    that    is  fundamental      to  the  success,  development   and   well-being   of   a   business.   It   may   include   formulas,   methods,  techniques and list of customers.   Example:     Faccenda Chicken Ltd v Fowler & Ors [1985] FSR 105  In this case an ex-employee started a rival business using sales information    obtained while in employment. The sales information relates to the name and    address   of   customers,   their   requirements,   the   timing   of   deliveries,   the   price    and the detail routes taken. The court however held that the sales information    was    not   confidential     because    it  was    information     that   remained      in  the    employee’s head and became part of his own skill and knowledge applied in    the   course   of   his   employer’s   business.   The   court   laid   down   three   kinds   of    information that may be acquired an employee in the course of employment;    

1.   Information which, because of its trivial character or its easy accessibility         from    public   sources    of  information     cannot   be   regarded    by   reasonable         persons   or   by   the   law   as   confidential  at   all.   The   servant   is   at   liberty   to         impart it during his service or afterwards to anyone he pleases even his         master’s competitor.    

2.   Information which the servant must treat as confidential (either because he         is expressly told it is confidential, or because from its character it obviously         is so) but which once learned necessarily remains in the servant’s head and         becomes part of his own skill and knowledge applied in the course of his         master’s     business.    So  long    as  the  employment        continues,    he   cannot         otherwise use or disclose such information without infidelity and therefore         breach  of contract. But  when he is  no longer in the same service, the law         allows    him   to  use   his  full  skill  and   knowledge    for  his  own    benefit  in         competition      with   his  former    master.   If  an  employer      wants   to  protect         information      of  this  kind,   he   cannot   do   so   by  an   express    stipulation         restraining the servant from competing with him within reasonable limits         of time and space after the termination of his employment.    

3.   Specific    trade    secrets   so   confidential     that,  even    though     they   may         necessarily have been learned by heart, even though the servant may have         left the service, they cannot lawfully are used for anyone’s benefit but the master’s.  In this case, the sales information falls under the second class.                                             

3.2.2          Literary and Artistic Secrets  
It refers to works not yet protected by copyright law. Specifically, this refers to  the time when these works are unpublished.    Gilbert v Star Newspaper Co (Ltd) (1894) 11 TLR 4    The case concerned unpublished written plot and dramatic ideas of an opera   where the material has come to the defendant in circumstances giving rise to a    duty of confidence. The court granted an injunction to restrain publication of    the   details   of   the   plot   of   the   plaintiff’s   opera   prior   to   its   public   performance    even    though     the   rehearsal    had    taken    place   weeks     before    the   public   performance and many people had known about it.  

3.2.3          Personal Secrets  
Personal secrets refer to information considered private or secret by a person, for  example information relating to marital relationship, sexual behaviour or medical  conditions of a person (Juriah Abdul Jalil, 2003).   Examples:    Lennon v News Group Newspaper Ltd [1956] FSR 573    The plaintiff, a former member of the Beatles sought to restrain his ex-wife    and    the   newspaper from publishing    articles    disclosing    details   of   the    relationships   between   them.   The court   held   that   the   information   relating   to    their marriage was no longer their private affair because both parties had put    it into the public domain.   Duke of Argyll v Duchess of Argyll & Anor (1962) SLT 333 (HL)    The plaintiff brought an action for divorce against the defendant on the ground    of adultery and averted that the defendant had recorded certain meetings with   her   paramour   in   a   diary.   The   defendant   denied   the   averment.   The   plaintiff    requested  for  the  production  of  the  diary.  The   issue  in  this   case  was  whether    consent   to   proof   before   answer   affected   waiver   of   confidentiality?   The   court   held that the mere admission that a diary existed did not affect the right to claim    confidentiality. It is common ground that a diary is confidential and cannot be    recovered and used in evidence unless something has occurred to destroy that    confidentiality.

Other cases for further reading are:  
(a)    Douglas v Hello (No 1) [2201] FSR 732;  
(b)    Naomi Campbell v Miror Group Newspaper [2002] EWHC 499; and  
(c)    Michael Barrymore v News Group Newspaper Ltd [1997] FSR 600.  

3.2.4         Government Information – Governed by Official               Secrets Act   This   refers   to   information   imparted   by   the   government.   However   in   Malaysia,  this information is governed by Official Secrets Act 1972.    

3.3         REQUIREMENTS FOR PROTECTION UNDER LAW OF CONFIDENTIAL INFORMATION   

There are three requirements for the information to be protected under this area  of   law.   These   requirements   were   established   in   the   case   of   Coco   v.   A.N.   Clark  (Engineers) Ltd. [1969] R.P.C. 41.     Coco v. A.N. Clark (Engineers) Ltd. [1969] R.P.C. 41    In   this   case   the   plaintiff   brought   an   action   to   restrain   the   defendants   from    misusing information communicated to them in confidence for the purpose of    a  joint  venture.   The   plaintiff  designed    and   developed    a  mini-bike    moped    engine   and   sought   the   defendant’s   expertise   to   manufacture   them.   Neither    party came to an agreement. The plaintiff later sued the defendant when the    later produced a similar machine. Nevertheless, the plaintiff failed in this case    because they failed to establish that the information was confidential in nature    and   they   also   failed   to   reveal   that  the   similarities   between   the   two   engines    were achieved by the use of the information, or that his engine had original    qualities which would amount to confidential information.   Coco v. Clark established three requirements for the law of confidence to apply:  
(a)    The information has the necessary quality of confidence;  
(b)    The information has been imparted in circumstances imposing an obligation         of confidence; and  
(c)    There   is   an   unauthorised   use   of   the   information   to   the   detriment   of   the         original communicator of the information.                                           

SELF-CHECK 3.1       Consider    whether      there  arises a   duty  of   confidence    in the   situations      below:      
1.  Brown   has   an   idea   for   a   new   radio   programme.   He   secretly   tells          Orange the idea. Discuss.      
2.  A journalist interviewed an employee of a company who revealed the          company’s        secret  marketing      strategies.   However,     the   employee          informed the journalist that he should never publish the information.          Discuss.         

ACTIVITY 3.1      Discuss the case below:     
Westpac   Banking   Corp.   v   John   Fairfax   Group   Pty   Ltd   (1991)   19   IPR   51     (Westpac Letters Case)  Westpac’s      solicitors,  Allen   Allen    and   Hemsley,     wrote    to  the   bank     advising     it  on   foreign    exchange    dealings     of   its  merchant     banking     subsidiary      Partnership     Pacific   Limited.    The    letters  detailed    several     instances of very serious breaches of banking regulations and practices. The     merchant bank had used dubious methods in its dealings with customer’s     foreign    exchange     investments      and   other    activities.  Both   the   Sydney     Morning Herald and the Age obtained copies of the letters and published     articles   referring   to  them   and   some    of  their  contents.   Westpac     sought     injunctions from the court to prevent further publication, arguing that the     publication was a breach of confidence and also infringed the copyright in     the letters.                                   

In certain circumstances, the law imposes a duty on the recipient of information       to keep certain information confidential.  
? There are four types of confidential information:       
? Trade secrets;       
? Artistic and literary secrets;        
? Personal secrets; and       
? Government secrets.  
? There are three requirements for the law of confidence to apply:       
? The information has the necessary quality of confidence;       
? The      information     has   been    imparted     in  circumstances      imposing     an           obligation of confidence; and       
? There   is   an   unauthorised   use   of   the  information   to   the   detriment   of   the           original communicator of the information.  

Artistic secrets                                  
Personal secrets  
Government secrets                               
Trade secrets  

Necessary quality of confidence        

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