According to section 2 of the Trade Marks Act, she can register any ‘sign’ thatcan be graphically represented and is capable of distinguishing her products inthe course of trade from those of another person. She can also register thecompany logo, the unique shape of her product, an aspect of packaging or anycombination thereof.Logo, colour scheme, packaging/ wrapping/ box/ how u open it, font(g)(i) Can an ex-employee set up another cake-shop with a totallydifferent name/get-up? (ii) Can he make use of the cake-recipes?(i)Yes, her ex-employee can rightfully do so provided there is no restraint of tradeclause in his employment contract which prevents him from setting up his ownbusiness in competition after he leaves his current employment. Nevertheless,even if such clause exists, the ex-employee can still set up another cake shop ifthe said clause is found to be unreasonable and hence unenforceable.However, if there is a reasonable restraint of trade clause that can be enforced -on the basis that Ah Lian has a legitimate interest to protect in her business, andit is reasonable in terms of time, area and scope, the ex-employee cannotrightfully set up another cake shop even with a totally different name/ get-up as itwould be in direct competition with Ah Lian’s cake shop and by doing so he
would be breaching the restraint of trade clause expressed in the employmentcontract. In this case, there is likely to be presence of a restraint of trade clause, as AhLian does have a legitimate interest to protect such as the cake-recipes that maybe regarded as confidential and not public information, and the ex-employee maybe in a position to pull customers to his new shop if he used cake-recipes fromAh Lian’s shop. However, time, area and scope would largely depend on theactual circumstances, such as the job scope of the ex-employee. Hence, giventhat an effective restraint of trade clause is clearly expressed in the employmentcontract and the ex-employee goes ahead to set up his cake shop, he would bebreaching the restraint of trade clause and Ah Lian may bring a legal actionagainst him for breach of contract.(i)SP owns the shop —> but can still employ workers eg baker, someone to takeorderGet-up: logo, font, colourCannot —> ROT HMMMMMMEmployment contract - express term —> cannot set up cake shop despitedifferent get-up —> must be valid —> 1. Legitimate interest, 2.Reasonableness (area, time, scope)Valid ROT clause. Reasonableness to have legitimate interest. Second is aboutarea, time, scope(ii)Even if the ex-employee can rightfully set up his cake shop, he cannot make useof the cake-recipes from Ah Lian’s shop as there would be a breach of tort ofconfidence. The cake recipes are considered to be confidential information as therecipes are unknown to the public and they gave Traz Cake Shop the competitiveadvantage to be successful. Therefore, the information about the cake recipereceived by the ex-employee has a necessary quality of confidence and the