Keppel Insurance ("Keppel"), a major player in the insurance field, has been sued for copyright infringement by a newly-formed motor insurance agency, Risque StrategiQue ("Risque").

The facts alleged by Risque are as follows :

Risque had formulated a policy to market warranty insurance for used cars. The agency had initially approached Keppel early this year to be its underwriter and made its first presentation to the group on 24 March 1999. Materials, including a market feasibility survey carried over a period of 6 months, were distributed pursuant to research obtained with "much painstaking labour" on Risque’s part.

However, a subsequent disagreement between the 2 parties resulted in the dissolution of the proposed joint venture. Risque then managed to enter into a partnership with UMBC Insurance ("UMBC") and asked Keppel to return the confidential materials provided at the presentation. Keppel was also required not to launch a similar product for 6 months.

While waiting for Keppel’s response, a newspaper advertisement by Hin Leung Credit ("Hin Leung") offering warranties for its cars was spotted by Risque and UMBC. It was then discovered that Hin Leung had tied up with Keppel to offer a scheme similar to that originally proposed by Risque. Additionally, some terms and conditions were identical to Risque’s policy.

As a result, Risque filed for an injunction in the High Court, requesting that Keppel be stopped from "further breaches of confidence and infringement of copyright". The outcome of these proceedings are yet to be known.

This is a typical scenario of joint ventures or partnerships that break down while negotiations are still on-going. In this regard, there is a large body of authority in support of the position that information which is disclosed for a limited purpose is received under the obligation of confidence and cannot be used or disclosed otherwise than for that purpose.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.