IP judgement vindicates start-up competition

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Specialist insurer Hiscox has praised a judgement in the Irish courts backing technology company HWM in their defence against claims of copyright infringement and breach of confidence, arguing it a victory for the right of IT employees in Ireland to regard their know how and experience as their own intellectual property.

Commenting on the judgement, Ian Birdsey, International Technology Claims Manager from Hiscox, who supported HWM in the legal action, said: “We are pleased to have backed a ground-breaking legal case that is likely to set the bar in Ireland for all future intellectual property law and copyright protection cases concerning the software and IT industry.

“HWM were prevented from making their fund administration software a success by the legal actions of a competitor who argued that ex-employees had set up HWM to launch their own competing product, which was alleged to have represented copyright infringement and breach of confidence. These claims led to complex, costly and lengthy litigation which seriously undermined the commercial viability of HWM.

“We have argued that know how and experience gained in one job belongs to the employee and it would be an illegal restraint of trade to prevent any employee applying those skills in a new job. When it comes to employment law, this judgement looks set to be a leading authority on non-compete obligations and restraints on trade in terms of what an employee is, and is not, entitled to do when joining a new employer.

Shamus O’Donnell, managing director of HWM, added: “We are delighted to have won the court’s backing in this crucial judgement which reinforces the freedom of employees in the IT sector to regard their own skills and know how as their own intellectual property and looks likely to be the leading intellectual property software authority in Ireland. Anything less would be a restraint of trade which would seriously damage the vitality and entrepreneurship of Ireland’s technology sector.

“This judgement vindicates our position since this process began back in 2007 that we developed ManTra independently as a true ground-breaking and market leading product. We have always considered this litigation to be unfounded and without merit and are grateful we can now move on.”

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