Drive Away the Competition

9th December 2015 Commercial

The Mercedes Formula 1 team have confirmed that they are in the midst of taking legal action against an employee who is due to join arch rivals Ferrari at the end of this month.

Benjamin Hoyle, is accused of searching and saving Mercedes Formula 1 race data with the intention of transferring this confidential information to Ferrari.

Mercedes has released a statement confirming that 'the company has taken the appropriate legal steps to protect its intellectual property."

This is an example of the importance that companies often place on their intellectual property and the steps available to employers to stop employees taking their confidential intellectual property. The steps available to employers in similar scenarios include a High Court injunction to stop the employee from transferring the data to his new company and an injunction to stop the new employer (for example, in the case of Benjamin Hoyle, Ferrari) to use and benefit from the confidential intellectual property. A company's confidential data is often one of its most valuable assets, giving the company the competitive edge in the market. Any misappropriation and misuse can provide a competitor with a significant and unfair advantage and the employer needs to act quickly to minimise damage or potential damage to its business.

Employers should be aware of behaviour that indicates that employees may be misusing, or considering misusing, confidential information, for example:

  • Working on projects or maintaining regular contact with customers without their line manager's knowledge.

  • Making extensive use of their personal email account or emailing documents to their personal email address.

  • Using a memory card or USB stick at work.

  • Taking documents (whether in hard copy or electronically) out of the employer's premises without authorisation.

  • Working outside their normal working hours, particularly just prior to their employment terminating or when this is not their usual practice.

  • An unusual amount of photocopying. If it is necessary to enter initials or a code before using the copiers it may be possible to detect who has been doing what.

  • Requests for secretaries or other team members to put together business information (for example, lists of customers) without an obvious business reason.

This case represents and interesting blend of intellectual property law, breach of contract and employment law. If you have any questions about these areas of law, please contact David Bondt or Jennifer Smith.

Full details of the case can be found at: https://www.jmw.co.uk/services-for-business/commercial/blog/drive-away-competition

We're Social

Marc Yaffe is a Head of Business Development located in Manchesterin our Management BoardSports Law departments

View other posts by Marc Yaffe

Let us contact you

*
*
*
*
*
*

COVID-19 Update - Our website and phone lines are operating as normal and our teams are on hand to deal with all enquiries. Meetings can be conducted via telephone and video conferencing.

View our Privacy Policy

Areas of Interest