In this case, the judge found that the allocation of an account on RFML`s earnings would not be an appropriate remedy for Ve`s right to trust. There was also no fiduciary relationship between RFML and V. RFML did not provide information on a secret design or procedure corresponding to forms of intellectual property. On the contrary, the relationship between them was based on a contractual relationship in which each party negotiated on the length of the arms to define the obligations that RFML had to accept with regard to the idea of a company or the opportunity identified by V. The case is a useful reminder of the importance of having an NOA before confidential information is disclosed and taking into account the corrective measures available (or not available) in the event of a violation of the NDA. It is possible that the remedy for infringement within the NOA itself may be defined in order to avoid future arguments and to deter infringements. First, Section 72 (A) of the Act punishes a person for breach of a lawful contract by dividing a person`s personal data obtained under a service contract. The provision provides that such a person, including the intermediary, is punished if it transmits personal data to third parties without the consent of such a party, « with the intention of provoking them or knowing that it is the cause of an illegitimate loss or illicit benefit », such a person, including the intermediary, is liable to a maximum prison sentence of three years or a fine of up to five lakh rupees or two. Recent case law shows that instead of awarding damages for loss of profit, the Tribunal may consider that the correct way to assess damages is to consider the value of a fictitious release tax, i.e. the amount of the exemption from the rights of the innocent party under the confidentiality agreement. This method of calculating damage is more often referred to as « damage negotiation. » A confidentiality agreement (or NOA) is often the first step towards a business relationship.
Before arriving on brass tacs and talking to turkey, two parties must be sure that the confidential business information they are about to share will not be disclosed or misappropriated. There are many situations where an NDA is used. Perhaps you are considering selling the business; Before the potential buyer performs due diligence, you want to make sure that the information is protected if the agreement is not reached. Or you want to grant your confidential information and other intellectual property rights; If the agreement is not reached, you will need security in case the potential licensee decides to « do it alone. »