Encryption as confidentiality marker

[David Swarbrick]

In Mars UK Ltd v Teknowledge Ltd, recently reported in the Times, (23
June 1999) encryption gets an interesting if limited mention.

Mars use vending machines which apply software to stored data to analyse
and identify coins inserted in their machines. Encryption is used to
protect that software/data as a valuable commercial product.

Teknowledge appear to have been able to work past the encryption in the
course of reverse engineering and reproducing the mechanisms.

In the course of the action Mars (among many other assertions), claimed
that the use of encryption was enough to fix Teknowledge with an
awareness of the confidentiality of the protected information, and this
also with a duty of confidence.

J Jacobs rejected the argument. The report I have is very limited, and
says almost nothing more, but however brief, it does perhaps challenge
some of the assumptions made about the use of encryption.

It is sad that Mars should use encryption which is beatable in this way.

It is sad also that encrypting text is not a sufficient 'hands off'
notice. I acknowledge that the law of confidence requires additional
elements beyond the fact of something being kept private, but the case
does muddy the waters perhaps.

-- 
David Swarbrick 01484 722531 david@swarb.freeuk.com http://www.swarb.co.uk  
IP / IT Law and Contracts. Home of the law-index of 9600+ uk case summaries.
   The Law Society regulates us in the conduct of investment business.