AV Asia loses appeal to obtain interlocutory injunction

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PUTRAJAYA: A television support equipment provider, AV Asia Sdn Bhd, lost its appeal yesterday to obtain an interlocutory injunction to stop Measat Broadcast Network Systems Sdn Bhd from using its confidential information to launch the Astro Beyond high-definition product.

A five-member Federal Court panel led by Chief Judge of Malaya Tan Sri Zulkefli Ahmad Makinudin unanimously dismissed AV Asia’s appeal and ordered the company to pay RM100,000 in legal costs to Measat Broadcast.

Justice Zulkefli said Measat Broadcast was disputing that it had disclosed the information and that the alleged breach of the non-disclosure agreement by Measat Broadcast had yet to be established.

He also held that Clause 15 of the non-disclosure agreement could not be relied on to fetter the discretion of the High Court in determining the interim injunction application.

Clause 15 states that the receiving party agrees that monetary damages would not be sufficient to compensate for unauthorised disclosure of confidential information and that an injunctive relief would be the appropriate remedy to prevent disclosure of confidential information.

Justice Zulkefli said AV Asia must satisfy all requirements set out in the American Cyanamid case which stated that the party seeking injunctive relief must prove, among others, that monetary damages were inadequate remedy.

AV Asia was appealing against a High Court’s decision on May 27, 2011 which rejected the company’s application for the injunction order. The Court of Appeal had also dismissed its (AV Asia’s) appeal.

On Aug 28, last year, AV Asia obtained leave from the Federal Court to appeal. — Bernama