Unfair Competition: Automation Company Is Convicted After Ex-Employee Uses Confidential Data to Acquire Clients

Written by Fabio Lucas Carvalho

Published on 29/09/2025 at 08:46

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Santa Catarina Court Confirms Condemnation of Company for Unfair Competition After Misuse of Confidential Information and Client Acquisition.

The 5th Chamber of Commercial Law of the Santa Catarina Court of Justice (TJSC) decided to uphold the condemnation of an industrial automation company for unfair competition.

The ruling confirmed that a former employee improperly used confidential information and images of projects from their previous employer to attract clients in the Itajaí Valley.

The conduct constituted a violation of the duty of professional secrecy and was classified as unlawful under items III and XI of Article 195 of Law No. 9,279/1996.

ARTICLE CONTINUES BELOW

Court Decision and Compensation

In the first instance, the court ordered the defendant company to pay R$ 20,000 in compensation for moral damages, in addition to removing the images improperly included in its portfolio.

A daily fine was also established in case of noncompliance with the order.

The condemned party appealed, but the TJSC rejected the arguments presented and upheld the decision, changing only the monetary adjustment indexes according to the current legislation.

The rapporteur highlighted that the appropriation of strategic information directly affects free competition and compromises the reputation of the harmed company.

According to established jurisprudence, it is not necessary to specifically prove moral damages, as they are presumed in these cases, characterizing the so-called “dano in re ipsa”.

Misuse of Confidential Information

In the vote, the rapporteur emphasized that it was proven that one of the partners of the condemned company, while still employed by the competitor, created a business in the same industrial automation sector.

He took advantage of confidential data, technical knowledge, and commercial contacts acquired in his previous role to offer services to already established clients of the employer.

This conduct even motivated his dismissal for just cause.

Although the projects of the harmed company had no formal registration with the National Institute of Industrial Property (INPI), the panel understood that the unauthorized reproduction and client acquisition were sufficient to generate damage to its reputation and justify the compensation.

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Unfair Competition: Automation Company Is Convicted After Ex-Employee Uses Confidential Data to Acquire Clients

Santa Catarina Court Confirms Condemnation of Company for Unfair Competition After Misuse of Confidential Information and Client Acquisition.

Court Decision and Compensation

Misuse of Confidential Information

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Unfair Competition: Automation Company Is Convicted After Ex-Employee Uses Confidential Data to Acquire Clients

Santa Catarina Court Confirms Condemnation of Company for Unfair Competition After Misuse of Confidential Information and Client Acquisition.

Court Decision and Compensation

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