CONFIDENTIALITY AGREEMENTS AND THE PROTECTION OF TRADE SECRETS: DOES IT HAVE TO BE ALL OR NOTHING?

Abstract

[In Maggbury v Hafele, the High Court of Australia had to consider whether a perpetual restraint of trade clause in a confidentiality agree- ment was valid. The majority judgment, which refused to enforce the re- straint, has been subject to criticism that it potentially puts confidentiality agreements at risk and hinders innovation. In spite of the criticism the au- thors of this article argue that the High Court decision was correct and that Maggbury provides valuable lessons for those drafting confidentiality agreements and seeking to protect trade secrets.]