Homework exercise 2 - Question

Alphonso Bell is an engineer at Salty Breakfast Pty Ltd ("SB").SB produce drones, and supples drones of all sizes for hobbyists and large surveillance drones for government defence departments and military organisations.

Alphonso is chief engineer in charge of the research and development ("R &D") at SB since he commenced working with SB 18 months ago.Alphonso is a specialist aerospace engineer having obtained his Bachelor of Aerospace Engineering (Honours) at Monash University 20 years ago. Prior to working for SB he worked at Falcon Aerospace Ltd for 10 years developing vertical take-off and landing capabilities for single seat aircraft and possibilities for flying family motor vehicles.

SB's restricts access to its R & D section, and due to its defence contracts requires all staff to have security clearances given by the Department of Defence, before they are given swipe card access.Even engineers involved in commercial non-military projects are required to meet this requirement. Alphonso refuses to sign any contractual agreement relating to his employment, because he is not satisfied with the amount of remuneration he would receive from any commercialisation of developments he makes whilst at SB. He remains employed without any contractual agreement.

Alphonso developed a new drone aimed at the commercial market of drone deliveries. The advances made with the new drone arise from use of aerodynamic principles of flight and the creation of a new composite carbon fibre. Aerodynamic engineers generally know the aerodynamic principles. The innovation relates to the application of equations calculating the drag and lift on different composite fibres surfaces.The new composite fibre reduces drag but increases lift enabling greater load carrying capacity.

The increase in load carrying capacity means this drone appeals to a wider market segment being both hobbyists and small to medium enterprises that currently use courier services. This represents a substantial revenue stream for SB.Delivery drones are a growing section of the drone market.

The new drone-testing program included use by commercial delivery firms in suburban Melbourne, and the public has seen the drones conducting deliveries over the past 3 months. The public have posted photographs of the drone to Instagram and Facebook commenting on how much these drones can carry given their size.

Falcon Aerospace Ltd (Alphonso's previous employer) approached Alphonso to head their R & D developments on favourable terms.

Alphonso leaves SB to join Falcon Aerospace Ltd and three months later Falcon Aerospace Ltd announce the development a revolutionary fibre compound for use in both drones and aircraft that will reduce drag and increase lift. SB believes the fibre uses confidential information developed by Alphonso whilst at SB.

Explain to SB can they bring an action against Alphonso personally or Falcon Aerospace Ltd for breach of confidence. Do not discuss contractual actions that SB may have against Alphonso.