across the bar

Standard Bank and MTN's cellphone banking product under fire

by default - Posted 06 April 2006

The Cape Times reports that legal action has been taken by two businessmen against Standard Bank and MTN alleging that the two companies have misappropriated certain trade secrets / confidential information relating to a cellphone banking product.

We don't have the full facts but one issue that is immediately highlighted is whether the two businessmen took adequate steps to maintain the secrecy of their confidential information? It is reported that they sent the information under cover of an e-mail to MTN in September 2004. The e-mail was sent on the understanding that the contents were private and confidential. In other words, there was no express agreement from MTN that the information would be treated as such.

It is also reported that the two had marketed the product between 2003 and 2005. From what was decided in the Valutel case, a lot will ride on how much info the two gave to prospective purchasers. If too much info was put out there, the courts may decide that the info in question was no longer confidential and therefore does not qualify for legal protection.

Watch the space.