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Courts & Preliminary Injunctions on Trade Secret Misappropriation

In order to ensure that trade secrets are not disclosed and/or used during the pendency of the litigation, it is crucial for an employer to make an immediate request for a temporary restraining order or preliminary injunctive relief as a way of managing the risk of trade secret misappropriation or confidential information theft/loss. Technically speaking, the progress and movement of a lawsuit are significantly changed by whether the employer wins or loses at the injunctive relief stage.

As we mentioned in the last post, the standards and criteria used by a court to grant a temporary restraining order or a preliminary injunctive relief request vary from state to state. However, irrespective of such variations, a plaintiff is required, at a bare minimum, to demonstrate a number of things and convince a court that they need a temporary restraining order or preliminary injunctive relief. The plaintiff requires showing that:

  • If the temporary restraining order or preliminary injunctive relief is not granted, the plaintiff will suffer irreparable damage.
  • There is a high possibility of succeeding based on the claim’s merits.

Additionally, the law requires a plaintiff to show that:

  • There is a public interest being advanced by the injunctive relief-
  • The plaintiff is favored by the balance of equities.

After meeting the above criterion, the employer can proceed and provide the court with critical forensic evidence showing proof of trade secret misappropriation and/or confidential information theft/loss by the former employer. Given that they have provided such evidence at this preliminary stage, the employer has a shot at having the court grant either the temporary restraining order or preliminary injunctive relief, which would be critical since it would prevent the former employee from disclosing and/or revealing the information or trade secret to a new employer or other interested parties.

In Part X of this series, we will move the discussion forward by hammering on “Other State Court Issues on Trade Secret Misappropriation Claims.”

As usual, while you should strive to be #UnusuallyMotivated, stay tuned for more education, training, and legal guidance. In the interim, reach out to us with questions and/or comments on our website at the Contact Us page!

Always rising above the bar,

Isaac T.,

Legal Writer, Author, & Publisher.