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Keywords

plaintiffdefendantinjunctionappealtrialtrade secret

contractplaintiffdefendantappealtrialpatenttrade secret

Related Cases

K & G Oil Tool & Service Co. v. G & G Fishing Tool Service, 158 Tex. 594, 314 S.W.2d 782, 117 U.S.P.Q. 54

Facts

John H. Kirby, II developed a magnetic fishing tool and licensed K & G Oil Tool & Service Co., Inc. to manufacture it. G & G Fishing Tools Service entered into an agreement with K & G but later disassembled the K & G tool to learn its internal construction, which they then used to create a similar tool. The jury found that G & G violated their agreement and used confidential information obtained through disassembly to manufacture their own tool.

It appears that John H. Kirby, II had been working upon a magnetic fishing tool for a number of years. He secured one patent on January 30, 1951 and in August of the same year he filed another application.

Issue

Whether the plaintiffs' magnetic fishing tool was entitled to protection as a trade secret and whether the defendants' actions constituted a breach of confidence.

Rule

A trade secret is protected from unauthorized use if it is not generally known and derives economic value from its secrecy. Breach of confidence occurs when a party discloses or uses confidential information obtained through improper means.

A trade secret may be a device or process which is patentable; but it need not be that. It may be a device or process which is clearly anticipated in the prior art or one which is merely a mechanical improvement that a good mechanic can make.

Analysis

The court applied the rule by examining the jury's findings, which indicated that G & G obtained the internal construction of the K & G tool through disassembly, violating their agreement. The court concluded that the K & G tool was not a simple device and that its protection as a trade secret was warranted, as the defendants' actions constituted a breach of confidence.

The factual situation disclosed by the jury's findings is not new to American jurisprudence. The basis of the trade secret case is a ‘breach of a contract or wrongful disregard of confidential relationships.’

Conclusion

The Supreme Court reversed the Court of Civil Appeals' judgment and affirmed the trial court's decision, which included a monetary judgment against the defendants and an injunction to prevent them from using the plaintiffs' trade secret.

The judgment of the Court of Civil Appeals is reversed and that of the trial court affirmed.

Who won?

K & G Oil Tool & Service Co., Inc. and John H. Kirby, II prevailed because the court found that their magnetic fishing tool was a protected trade secret and that the defendants had breached their agreement.

Petitioners have requested and are granted leave to amend their application for writ of error.

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