JUDGMENT

Tengku Maimun Tuan Mat J:

The Background

[1] The 1st plaintiff is a company incorporated under the Laws of Malaysia. The 2nd plaintiff is a company incorporated in Germany and is in the business of developing, marketing and licensing software programs. The 1st plaintiff is a wholly owned subsidiary of the 2nd plaintiff. The 1st and the 2nd defendants are both companies incorporated under the Laws of Malaysia. The 1st defendant was established on 5 April 2000 as Magnus HRM Net Sdn Bhd with the main shareholder being a Dutch company, Magnus Corporate Incubator BV while Iskandar Basha bin Abdul Kadir (Iskandar) and Deslorieux Roger Mauclair held one share each. Iskandar was also the Managing Director. In or around March 2001 the 2nd defendant which was wholly owned by Iskandar and his wife took over 40% of the shares in the 1st defendant. In or around February 2003, the 2nd defendant took over the 1st defendant completely and on 17 March 2003 the name of the 1st defendant was changed to its current name.

[2] The 2nd plaintiff created a business application, Enterprise Planning software package known as SAP R/3 software, subsequent versions and upgrades thereof which is the subjec