A Swiss market research and market audit company contracted with an Israeli entity who supplied for it services were in Israel, but no contract was signed between the parties. Due to suspicion of dishonesty of the Israeli entity, the company stopped the services and demanded that the Israeli entity does not contact its customers, use any of its data or use its name.
The Court rejected the motion for an injunction excluding the prohibition of use of the name, after holding that the parties did not have an agency relationship but rather a type of joint venture as it can be seen that the Israeli guaranteed certain accounts and the relationship was complex and the separation difficult, as opposed to what can usually be seen in an agency. Thus, the data and customers belong to both parties. Moreover, even if it were a relationship of agency, in the absence of an agreement a principal cannot prevent an agent from competing with it after the termination of the agency.