Advice required - breach of employement clause by employee

Dear Abijith, First of all, there will not be any breach of IPs unless they are duly registered. (But this rule does not applicable in copy rights) If the employer has registered IPs then the case would be determined on the basis of similarities between the IPs being used by your brother and the employer. Secondly, as far as the question of employment is concerned, it will be determined on the basis of the employment contact. Generally speaking, the company can not recover any amount on account of loss caused by termination of employment except the cost of hiring new employee.

Dear Abijith, First of all, there will not be any breach of IPs unless they are duly registered. (But this rule does not applicable in copy rights) If the employer has registered IPs then the case would be determined on the basis of similarities between the IPs being used by your brother and the employer. Secondly, as far as the question of employment is concerned, it will be determined on the basis of the employment contact. Generally speaking, the company can not recover any amount on account of loss caused by termination of employment except the cost of hiring new employee.

Dear Abijith, First of all, there will not be any breach of IPs unless they are duly registered. (But this rule does not applicable in copy rights) If the employer has registered IPs then the case would be determined on the basis of similarities between the IPs being used by your brother and the employer. Secondly, as far as the question of employment is concerned, it will be determined on the basis of the employment contact. Generally speaking, the company can not recover any amount on account of loss caused by termination of employment except the cost of hiring new employee.

Dear Abijith, First of all, there will not be any breach of IPs unless they are duly registered. (But this rule does not applicable in copy rights) If the employer has registered IPs then the case would be determined on the basis of similarities between the IPs being used by your brother and the employer. Secondly, as far as the question of employment is concerned, it will be determined on the basis of the employment contact. Generally speaking, the company can not recover any amount on account of loss caused by termination of employment except the cost of hiring new employee.

As I understand the question :

 

a) Your brother was working in the Design department of a company and during his tenure some designs were made by this Department,

 

b) Your brother resigned and - using the same designs - has started his own Company.

 

If so- and particularly if the Company was making efforts to keep such informations secret and / or had signed contracts with its workers to this effect, the case lies well within a Trade Secret violation. Irrespective of whether the design / product / process was copyrighted/ patented or not. Normally the Employment Offers would  carry such a clause.

 

See the link below for some more inputs ;

https://www.mondaq.com/india/x/204598/Trade+Secrets/Trade+Secrets+In+Indian+Courts

 

DISCLAIMER : General information and advice provided is without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel . However, if it helped anyone even a little a " thanks" via the " Thank Contributor " button would be appreciated and would encourage me to keep on making efforts :-) . I am also always open to corrections and further learnings from more experienced Seniors here.For DIRECT contact with me / my friends and more law related informations / queries visit https://getjoy.in/r/q

Hi Hardeep,

I missed out a few pointers.

1. My brother was not employed with the design department, he was employed with the Sales department.

2. His company has not used any designs from his last employer. These were fresh designs and universal design basics were adopted which remain the same for any company or individual manufacturing the product. These products are custom made and design principles change from order to order - client to client.

Reading your case again - Does the employment contract allow for private similar business to be done while continuing in employment ? 

 

Normally this would be construed as conflict of interest and would be prohibited by the employment contract. If so, a case does lie. Seems like your brother diverted some orders to his company which he could / should have procured for his employer. Suggest he approaches a lawyer with complete details.