KOAN

Accura prevails in prohibitory injunction proceedings: Concept no basis for claim for prohibitory injunction

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Accura prevails in prohibitory injunction proceedings: Concept no basis for claim for prohibitory injunction

In December 2023, Accura represented KOAN A/S, Colloquium ApS (until the company’s subsequent bankruptcy) and the CEOs of the two companies in prohibitory injunction proceedings instituted by Forlaget Andersen A/S (Karnov Group). On 9 January 2024, the Danish Maritime and Commercial High Court dismissed the claim against the respondents.

Forlaget Andersen A/S claimed that a prohibitory injunction be granted against KOAN’s commercial activities consisting in the marketing and sale of knowledge modules within e.g. commercial law and that KOAN be ordered to terminate all collaboration with several of its customers. Forlaget Andersen A/S claimed the granting of the prohibitory injunction against KOAN’s commercial activities on the grounds of an alleged breach of contractual obligations and violation of the Danish Marketing Practices Act (markedsføringsloven) and the Danish Act on Trade Secrets (lov om forretningshemmeligheder), including the infringement of Forlaget Andersen A/S’s concept. The contractual obligations included a confidentiality clause and a non-competition clause to which KOAN’s CEO was subject according to an agreement previously concluded between the CEO and Forlaget Andersen A/S.

Colloquium had previously undertaken sales and marketing functions on behalf of Forlaget Andersen A/S. When that collaboration was terminated, Colloquium entered into a business agreement with KOAN. Forlaget Andersen A/S claimed the granting of a prohibitory injunction against the commercial exploitation by KOAN, Colloquium and the CEOs of both companies of the customer information which, according to Forlaget Andersen A/S, Colloquium had acquired during its past collaboration with Forlaget Andersen A/S.

Moreover, the proceedings concerned whether the companies and the CEOs could be held personally liable and were punishable by a fine for the alleged infringements and violations.  

The Danish Maritime and Commercial High Court did not find any basis for granting a prohibitory injunction in respect of Forlaget Andersen A/S’s alleged concept or that KOAN and Colloquium had unlawfully used customer information or other confidential information in their businesses. Consequently, the court did not find any basis for holding the CEOs of the companies personally liable. Therefore, the court sustained Accura’s plea that the case against the respondents be dismissed. The case supports the practice that, generally, Danish law does not provide any legal basis for concept protection and that alleged market-infringing conduct or conduct contrary to the Danish Act on Trade Secrets must be proved and justified by very specific disloyal, systematic actions.

Christina Type Jardorf conducted the litigation on behalf of KOAN, Colloquium (until the company’s bankruptcy) and the two CEOs. The bankruptcy estate chose not to join the proceedings.

No appeal has been lodged against the decision.