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TRADE SECRETS AND CONFIDENTIAL INFORMATION - Unauthorized use

Friday, February 07, 2020 @ 6:23 AM  


Lexis Advance® Quicklaw®
Appeal by the plaintiff from the dismissal of its claim against the defendant for breach of confidence. The plaintiff held two patents for oral dissolvable strips. In 2017, the parties entered an agreement to produce and market cannabis-infused rapid release oral dissolvable strips. The plaintiff provided the defendant with a list of potential manufacturers, which included HED International. After the plaintiff terminated the agreement, the defendant requested a professor develop a formulation for a thin film drug delivery system and entered a distribution agreement with HED. The motion judge found the plaintiff failed to demonstrate it suffered any detriment because of the defendant’s actions.

HELD: Appeal dismissed. The motion judge did not misapprehend the evidence on the distribution agreement between the defendant and HED. He did not err in finding the defendant did not misuse confidential information to the plaintiff’s detriment. There was no evidence the defendant shared the plaintiff’s confidential information with the professor. The plaintiff suffered no detriment attributable to the defendant’s actions.

CTT Pharmaceutical Holdings Inc. v. Rapid Dose Therapeutics Inc., [2019] O.J. No. 6584, Ontario Court of Appeal, P.D. Lauwers, D. Paciocco and J.M. Fairburn JJ.A., December 24, 2019. Digest No. TLD-February32020009