Trade Secrets & Confidential Information

4. Disclosure of Trade Secrets or Confidential Business Information to Third Parties

An action may not be available against a third party recipient in Canada because of the lack of a direct relationship between the owner of the trade secret and the third party. The Supreme Court of Canada was asked whether obtaining, without authorization, confidential information by copying the document or memorizing its contents constituted theft . The Supreme Court answered no. Mr. Justice Lamer did comment that "It is possible that, with time, confidential information will come to be considered as property in the civil law or even be granted special legal protection by statutory enactment". In Canada, the protection of trade secrets and confidential business information remains in the jurisdiction of the civil courts, and any successful action against a third party will have to proceed on the basis of a breach of confidence or unjust enrichment.