Design theft charge against ex-staff junked

The Bombay High Court has dismissed the petition of a medicine packaging company alleging that its former employees started a rival firm and thus violated their terms of contract, and were also guilty of ‘passing off’.

The employees had worked as assistant manager (production) and mechanical draughtsman. Later they started another firm dealing in blister packing of medicines and cold forming machine. They also stated in the brochure of the new firm that they had seven years of experience in the original company.

The latter moved the high court alleging that its ex-employees had used its designs to start their venture. The high court rejected the plea in its judgment, IMA-PG India vs. Accupack. It stated that the company had not proved that it had the proprietary right to the exclusive use of any mark or get-up.

Merely because the ex-employees had worked in the company cannot lead to the conclusion that they had passed off goods of the original firm.