Malaysian court has held that Disclosure Agreements must not be used to enforce non-compete clause against ex-employee - Interesting read
The Federal Court of Malaysia has held that a Confidentiality agreement signed by the employee should not be used to enforce non-compete clause against their employees and the employer is required to prove the confidential information that has been breached and the irreparable damage caused to the company due to su ch breach including the infringement of its IP rights. Courts weigh in on requirements for breach of confidentiality claims Newsletters October 18 2016 | Contributed by Gan Partnership Malaysia Facts The appellants in Dynacast (Melaka) Sdn Bhd v Vision Cast Sdn Bhd (1) were part of Dynacast's group of companies (hereafter, 'Dynacast Group') which were in the business of die casting components. In 1980 the second respondent, Mr Cheok, was employed by Dynacast Group and eventually appointed as regional director until he resigned in 2002. Thereafter, Cheok set up Vision Cast – the first respondent in the case at hand. Subseq...