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The Story of William Redmond

The story helps us in understanding the concept of Inevitable Disclosure


(Anticipatory Breach of Contract).
Redmond had signed a confidentiality agreement with PepsiCo and agreed not to
share any information that are confidential to Pepsi. Snapple and Pepsi Cola were
both into beverage business so the marketing strategies including pricing of the
product, positioning of the product and distribution channel were similar. For
effective business these strategies were required which clearly states the use of
trade secrets. Thus the company had issued permanent injunction against
Redmond and Snapple.
The concept of IRRR comes into picture in this story.
Irreparable Loss- Business of the firm can be affected.
Risk- Redmond cannot succeed in Gatorade without using the knowledge or
information used in Pepsi Cola.
Role- Same role demanded sharing of information
Resource-Resources used in the business were on the same lines.
The court also agreed that Pepsi was trying to protect its explicit intellectual
property and not trying to stop Redmond using his skills and knowledge.
This story basically highlighted the enforceable nature of inevitable disclosure in
US. Other story discussed that day had similar concepts but inevitable disclosure
is not enforceable in India as discussed in EVP through blank cheque.
Instructor also emphasized on the duration of permanent injunction.
If I were supposed to narrate it again I would compare it with the enforceable
nature of Inevitable Disclosure practices worldwide.

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