Kate Anson has a science degree and a MSc in Creation and Development of Perfumes, Cosmetics...

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Kate Anson has a science degree and a MSc in Creation and Development of Perfumes, Cosmetics and Flavours, from the University of Versailles France. For the last 10 years she has worked at Louis Vuitton Moët Hennessy Ltd (LVMH) laboratories making specialist perfumes and cosmetics for inhouse brands and boutique companies. Her knowledge of chemistry means she has specialist skills in knowing how to mix natural and synthetic chemicals to create scents that have proved popular and successful for clients. For the past year Anson has been concentrating on producing a range of scents to be released by LVMH as a new premium perfume and toiletry brand, that capture the essence of the Australian bush and beach. Each formula generally takes six to nine months of testing and refining before it is accepted for inclusion in the database. All new formulas developed are catalogued, indexed and stored both as a sample in central refrigerated storage facility and the formulae in a central database. While LVMH staff can access the laboratories where they work, only senior management, with authorisation can access the database. In addition, all chemists are required to maintain and store their notes about creation of the scents for the purposes of recording how the scent was created, together with tests for allergies with skin types etc that are performed to ensure the scents will pass accreditation requirements. The chemists work protocols means no one is entitled to take any notes home, all work is documented in the laboratories and remains at the laboratories. Perfume Australia Ltd ("PAL"), a competing cosmetics firm in Australia approaches Anson and makes an offer for her to head their specialist perfume team. PAL want to use her knowledge and connections to enable PAL to become a major player in the perfume market. Anson accepts the job offer at PAL, and leaves LVMH. Two months after Anson joins PAL, PAL release of a new range of perfumes and toiletries that capture the essence of the Australian bush and beach. These released perfumes smell similar to the perfumes Anson had produced prior to leaving LVMH. LVMH purchase samples of the PAL's perfumes and analysis them and find the essential chemicals used are either identical to or have minor variations to the list that Anson had produced prior to leaving. LVMH's have lost the uniqueness of the launch of their Australian bush and surf range, in what was identified as a very lucrative market. Explain to LVMH whether they can bring an action for breach of a duty of confidence in equity against Anson and PAL. In your answer discuss whether Anson and PAL can raise a clean room defence. .......... Do not discuss or raise arguments that relate to restraint of trade (employment law), breach of express / implied terms in contract law, breach of fiduciary duty, or actions under the Corporations Law. These arguments are not relevant to this question. 20 marks Kate Anson has a science degree and a MSc in Creation and Development of Perfumes, Cosmetics and Flavours, from the University of Versailles France. For the last 10 years she has worked at Louis Vuitton Moët Hennessy Ltd (LVMH) laboratories making specialist perfumes and cosmetics for inhouse brands and boutique companies. Her knowledge of chemistry means she has specialist skills in knowing how to mix natural and synthetic chemicals to create scents that have proved popular and successful for clients. For the past year Anson has been concentrating on producing a range of scents to be released by LVMH as a new premium perfume and toiletry brand, that capture the essence of the Australian bush and beach. Each formula generally takes six to nine months of testing and refining before it is accepted for inclusion in the database. All new formulas developed are catalogued, indexed and stored both as a sample in central refrigerated storage facility and the formulae in a central database. While LVMH staff can access the laboratories where they work, only senior management, with authorisation can access the database. In addition, all chemists are required to maintain and store their notes about creation of the scents for the purposes of recording how the scent was created, together with tests for allergies with skin types etc that are performed to ensure the scents will pass accreditation requirements. The chemists work protocols means no one is entitled to take any notes home, all work is documented in the laboratories and remains at the laboratories. Perfume Australia Ltd ("PAL"), a competing cosmetics firm in Australia approaches Anson and makes an offer for her to head their specialist perfume team. PAL want to use her knowledge and connections to enable PAL to become a major player in the perfume market. Anson accepts the job offer at PAL, and leaves LVMH. Two months after Anson joins PAL, PAL release of a new range of perfumes and toiletries that capture the essence of the Australian bush and beach. These released perfumes smell similar to the perfumes Anson had produced prior to leaving LVMH. LVMH purchase samples of the PAL's perfumes and analysis them and find the essential chemicals used are either identical to or have minor variations to the list that Anson had produced prior to leaving. LVMH's have lost the uniqueness of the launch of their Australian bush and surf range, in what was identified as a very lucrative market. Explain to LVMH whether they can bring an action for breach of a duty of confidence in equity against Anson and PAL. In your answer discuss whether Anson and PAL can raise a clean room defence. .......... Do not discuss or raise arguments that relate to restraint of trade (employment law), breach of express / implied terms in contract law, breach of fiduciary duty, or actions under the Corporations Law. These arguments are not relevant to this question. 20 marks

Answer rating: 100% (QA)

SOLUTION LVMH may be able to bring an action for breach of a duty of confidence in equity against Anson and PAL based on the following analysis 1 Duty of Confidence An employee owes a duty of confiden... View the full answer