A software development company has filed a judicial protest against its support and maintenance service provider over an alleged breach of confidentiality.

Qgen Ltd, a St. Julian’s-based IT company which develops software used in due diligence operations against money laundering activities, had developed a unique system known as know-your-client (KYC).

The company developed the software over a number of years at considerable cost and risk. It then entered into a support and maintenance agreement with Aqubix Ltd, binding the latter under a strict confidentiality clause.

This working agreement meant that Aqubix had continuous access to Qgen Ltd's operating system and source code, comprising its highly specialised software as well as relatively detailed documentation.

However, last year Aqubix Ltd transformed its business operations, shifting from a support and maintenance company to one which introduced a  ‘KYC Portal’ identical to that offered by Qgen Ltd.

Qgen Ltd argued that Aqubix could only shift its business operations in this way through sensitive and confidential information obtained from their working agreement.

This amounted to a "clear and unequivocal violation" of contractual obligations binding the two companies, Qgen is arguing. 

For this reason, Qgen Ltd called upon Aqubix to desist from such abusive and illegal behaviour by ceasing to offer its ‘KYC Portal’ service with immediate effect, whilst reimbursing all financial gains made.

Qgen Ltd also reserved the right to institute further legal action to safeguard its rights.

Lawyer Tonio Cachia signed the judicial protest.