Air Philippines Corporation vs Pennswell INC GR No 172835

Air philippines corporation vs pennswell inc gr no

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Air Philippines Corporation vs. Pennswell, INC G.R. No. 172835 December 13, 2007 RULING: No. The products are covered by the exception of trade secrets being divulged in compulsory disclosure. The Court affirms the ruling of the Court of Appeals which upheld the finding of the RTC that there is substantial basis for respondent to seek protection of the law for its proprietary rights over the detailed chemical composition of its products. The Supreme Court has declared that trade secrets and banking transactions are among the recognized restrictions to the right of the people to information as embodied in the Constitution. SC said that the drafters of the Constitution also unequivocally affirmed that, aside from national security matters and intelligence information, trade or industrial secrets (pursuant to the Intellectual Property Code and other related laws) as well as banking transactions (pursuant to the Secrecy of Bank Deposits Act), are also exempted from compulsory disclosure. A trade secret is defined as a plan or process, tool, mechanism or compound known only to its owner and those of his employees to whom it is necessary to confide it. The definition also extends to a secret formula or process not patented, but known only to certain individuals using it in compounding some article of trade having a commercial value. American jurisprudence has utilized the following factors to determine if an information is a trade secret, to wit: 1. the extent to which the information is known outside of the employer’s business; 2. the extent to which the information is known by employees and others involved in the business; 3. the extent of measures taken by the employer to guard the secrecy of the information; 4. the value of the information to the employer and to competitors; 5. the amount of effort or money expended by the company in developing the information; and 6. the extent to which the information could be easily or readily obtained through an independent source
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Article 292. Revelation of industrial secrets. - The penalty of prision correccional in its minimum and medium periods and a fine not exceeding 500 pesos shall be imposed upon the person in charge, employee or workman of any manufacturing or industrial establishment who, to the prejudice of the owner thereof, shall reveal the secrets of the industry of the latter.
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