• Remedy to recover intellectual property

We are a computer education company with head office at Chennai,providing books for computer subject and resource materials for schools in India.
One of our employee who is a team leader in Madurai region working for more than 6 years, has started a new company doing the same business(books and software) as we do and registered the company at Madurai during April 2018 in which he and wife are directors. This employee who started a new business stole some of our contents and used it in his books and stole a lot of intellectual resources from our company.
He also poached few more employees and asked them promote his books to our customers. He has approached many of our customers and got orders for his company. We lost our business because of this.When we found out, this employee first denied the fact then later on admitted the truth and given an apology letter too. But there are lots of dues he owes to the company. Moreover the stolen contents are being printed right now as books to be delivered to customers. We have given a police complaint in chennai. But the police are saying this is a civil case and therefore, you have to go to court to recover all these. We have given laptop, a car and supported his brother's education and his marriage. So far we have recovered laptop and car. He has used our official laptop to develop his company's business. What should be done next? THe police however said, we will call him, and enquire. Meanwhile the employee sent a resignation letter through mail stating that he has handed over everything and resigned. We have all evidences of the contents and resources he stole in our official laptop and the employee to admitted the same. Please guide us now.
Asked 6 years ago in Intellectual Property

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15 Answers

Sir first of fall give a complaint with police under section 64 Copyright act if you have already given complaint and no FIR is registered peruse police to file FIR under section 64 copyright act to infringe your copyright due to which you have suffered huge losses.if police refuse to file , file a private complaint to magistrate under 156(3) for copy right violation and seizer of violating material.

Now there lies two separate civil suit furst for recovery of damages from his copyright violation and second suit for damages and dues company owes him.

The both are separate suit and company has to file against him in the civil.court of pecuniary jurisdiction .

Also along with copyright suit an application for interim stay has to be filed against his company wife and him so he can more use your work and sell it to customer.

See in copyright it will be against his company firm along with him and wife.

And in recovery of dues it shall be against him as an employee of company.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

Hello,

You will have to file a suit to claim compensation and damages in the civil court.

If your trademark was registered and he is using the same to promote his business then you will have to file a suit for infringement of trade mark.

Before filing the suit send a legal notice to him in order to claim the damages that have accrued to you and if he does not respond to the said notice then contact a local lawyer and file a suit against him.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

1) issue legal notice to employee that during course of his employment he has started similar kind of business , stole your data , poached your employees, contacted your customers in violation of terms of his employment

2) call upon him to desist from publishing books from stolen contents and claim damages for loss of business suffered by you

3) file suit for damages to recover loss suffered by you

4)seek an injunction restraining him from contacting your employees , customers , publishing stolen data etc

Ajay Sethi
Advocate, Mumbai
96976 Answers
7829 Consultations

Send him a legal notice in the present matter and ask him to forthwith restraint from reproducing the books/works in which you have a copyright.

For the business loss caused to use due to his act, seek damages from his for infringement of copyright.

You need to take help from a local law firm handling IPR litigation.

If the legal notice fails to help, approach the District Court and file a suit.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

You can get a civil suit for the use of content without you permission and claim for the compensation under section 51 ,55 & 63B of the Copyright act 1957.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

1. Police can just register an FIR under the appropriate sections of the Indian Penal Code or may ask you to compromise the matter with him in lieu of some damages.

2. Yes the police can help you in getting the compensation on the basis of the settlement. Otherwise to file the suit to claim compensation you will not require any documents from the police.

regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

1. The police can seize such goods under violation of copyright act and make an arrest for offence under copyright act such other applicable provision of indian penal code.

2. You should file a suit for recovery of all the damages from infringement and second suit for recovering damages as employee he has caused.

The criminal case go separately the police shall submit a seizure report of such infringing goods. No police doesn't have power to grant compensation though with help of police if he ready to pay all the damages a compromise may be arrived at and he sign agreement that in future won't violate any copyright .

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

police can after preliminary inquiry file FIR against him for criminal breach of trust under section 406 of IPC

2) damages have to be claimed from civil court

3) you have to file civil suit for damages as mentioned herein above

Ajay Sethi
Advocate, Mumbai
96976 Answers
7829 Consultations

Police cannot fetch you compensation in lieu of the business losses suffered.

Police can register a FIR and book this fellow for the offences of theft, cheating and criminal breach of trust.

It is advisable that you initiate a civil action parallel to the Police case.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Dear Client,

IP rights are infringed when a work protected by IP laws with regard to patents, copyright, and trademarks, and "misappropriation" with respect to trade secrets, copied or otherwise exploited without having the proper permission from a person who owns those rights.

Examples of an IP infringement are “counterfeiting” and “piracy. So Remedy available only if protected under IP laws.

Intellectual Property is governed under the Patents Act, 1970; Trademarks Act, 1999; Copyright Act, 1957; Designs Act, 2001, etc.

Next - He also poached few more employees and asked them promote his books to our customers --- This can be dealt for violation of appointment letter, if such clause exits if termination/resignation of employee.

1. What will the police do to this employee as per law? - case of criminal breach of trust sec 406 IPC.

2. What should we be doing based on the police enquiry? If we are proceeding with the case to court, what documents should we collect from police? Do the police have the power to get the compensation? - no.

Yogendra Singh Rajawat
Advocate, Jaipur
22992 Answers
31 Consultations

Delhi High Court On The Issue Of Theft Of Company Data By Former Employees;

Conclusion- The present case reflects a very sensitive issue i.e. theft of data or source codes by the employees. As a company's data is accessible by employees, it becomes vulnerable to IP infringement. Hence, it is essential that adequate protection of data is ensured and confidentiality clauses are incorporated in employment agreements in such a manner that they firmly prohibit misuse of data by employees.

Brief Facts of the Case – In this case, an individual namely, Tarun Tyagi (hereinafter referred to as the Petitioner) filed the present petition for quashing an order passed by the Chief Metropolitan Magistrate on November 6, 2013 in the matter.

Background of the case- Initially, the complaint was filed against the Petitioner by the company Unistal Systems Pvt. Ltd. (hereinafter referred as the Complainant Company) of which the Petitioner was an employee from 2003 to 2005. The Complainant Company is engaged in the business of providing data recovery services.

Allegedly, after leaving the services of the Complainant in September, 2005 the Petitioner set up a company namely M/s Prodata Doctor Private Limited (hereinafter referred as the Petitioner's Company). The Petitioner's Company was also engaged in a similar business of data recovery and developing software applications for computers.

The Complainant Company in suspicion of theft of its source code by the Petitioner registered a FIR with the CBI (Central Bureau of Investigation) wherein it alleged that somewhere around March, 2005 the Petitioner had stolen the source codes of a software known as "Quick Recovery" and the same was offered for sale by the Petitioner's company under the name "Prodatadoctor".

In view of the above complaint, the CBI conducted seizure of documents and disks from the Petitioner's company. Meanwhile in 2008, the Complainant Company preferred a suit for perpetual injunction and damages against the Petitioner alleging infringement of its copyright of software named, Quick Recovery. The suit of the Complainant Company was based on the footing that the Petitioner had stolen the source code of a software developed by it and the same was put up for sale by the company owned by the Petitioner by making some cosmetic changes in the software.

Thbus, the police also can register a criminal complaint under section 406 IPC against the employee.

You may also file a recovery suit for the losses due to infringement of the copyrights and a suit for perpetual injunction and damages against the Petitioner alleging infringement of its copyright of data that has been allegedly stolen and being used by him.

IP rights are infringed when a work protected by IP laws with regard to patents, copyright, and trademarks, and "misappropriation" with respect to trade secrets, copied or otherwise exploited without having the proper permission from a person who owns those rights.

T Kalaiselvan
Advocate, Vellore
87178 Answers
2341 Consultations

The police may register FIR if you put more pressure on them or it may first try to solve the issue amicably if he agrees for compensating your loss to some substantial extent.

Police can register a FIR and book this fellow for the offences of theft, cheating and criminal breach of trust.

You may have to approach civil court for claiming compensation towards the damages you suffered.

T Kalaiselvan
Advocate, Vellore
87178 Answers
2341 Consultations

First you can file a criminal case of cheating on him under section 420 IPC. This is also case of infringement of copyright and breach of trust as he has contacted your earlier clients. You can also file civil suit for recovery of damages to the company.

Prashant Nayak
Advocate, Mumbai
32493 Answers
201 Consultations

Has your company acquired patent rights over the materials sold by you to customers?

If yes, and if sufficient materials are on record, then he is liable to for having committed an offence under IP laws. Also, IPC provisions may be invoked.

Rajaganapathy Ganesan
Advocate, Chennai
2198 Answers
8 Consultations

Dear Sir,

My answers are as follows:

1. What will the police do to this employee as per law?

Ans: Police are vast powers and even they can put a theft case against your ex-employee.

2. What should we be doing based on the police enquiry?

Ans: Police themselves file charge sheet against him and in support of it you may file a suit case against him to recover some huge amount as damages caused to your business.

3. If we are proceeding with the case to court, what documents should we collect from police? Do the police have the power to get the compensation?

Ans: You must collect your own documents and after filing charge sheet you can get all the documents filed by the police before the Court. Police do not give any compensation.

Kishan Dutt Kalaskar
Advocate, Bangalore
6179 Answers
490 Consultations

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