Pexmart CC v H. Mocke Construction (Pty) Ltd

Mr Mocke, after years of involvement in plastic pipe-lining technology, acquired an exclusive and irrevocable licence to a specialised plastic pipe-lining process (the Polymeric/Sureline Process) owned by an American inventor, Mr Gish. The process involved a unique deforming machine and associated confidential know-how used to rehabilitate steel pipes in the mining industry. Mocke Construction (Pty) Ltd was permitted to use the licensed technology. Mr Henn, a long-time associate of Mr Mocke, was employed by Mocke Construction and became involved in a gold mining pipe-lining project. After his dismissal in 2013, Mr Henn joined Pexmart CC. Thereafter, Pexmart tendered for and secured a pipe-lining project with the same mining company at a cheaper price. Mr Mocke and his company alleged that Pexmart and Mr Henn had unlawfully used and reverse-engineered their confidential information, trade secrets and licensed technology. When Pexmart refused to cease using the technology, litigation ensued.

The appeal was dismissed with costs, and the decision of the Gauteng Division of the High Court, Pretoria, was upheld.

The case is significant for South African law on the protection of confidential information and trade secrets, particularly in a commercial and technological context. It reaffirms that licensed technology, know-how and industrial processes not in the public domain are protectable and that competitors may not evade liability by claiming reverse engineering where confidential information has been unlawfully used. The judgment also highlights the evidentiary consequences of a key witness failing to testify.