Commercial Division Blog
When Party Requires that Information it Sells Be Kept Confidential, Information Still Protected
On October 25, 2016, the First Department issued a decision in BitSight Technologies, Inc. v. SecurityScorecard, Inc., 2016 NY Slip Op. 06980, holding that when a party requires that information it sells be kept confidential, that information remains protected as confidential information despite its sale, explaining:
When a party sells information to subscribers with the requirement that the latter keep the information confidential, the information is still protected. At least for the purposes of a CPLR 3211 motion to dismiss, Anubis took sufficient precautionary measures to keep cyberfeeds confidential, since a trier of fact might find that cyberfeeds are covered by the contract's confidentiality provisions.
(Internal quotations and citations omitted).