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Tennessee Federal Court Enjoins Misuse of Employer's Trade Secrets | Butler Snow LLP


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Misappropriation of trade secrets claims often turn on whether the information that was taken is truly a “trade secret.”  In considering whether information is a trade secret, courts consider a number of factors, including the extent to which it is public knowledge, measures taken to preserve its secrecy, the value to its owner and competitors, resources expended in developing the information, and the ease for someone else to acquire the information.  Employers often ask courts for a quick ruling before trial in the form of a “preliminary injunction” to preclude a former employee from misappropriating trade secrets.  Courts consider the following factors in determining whether to issue a preliminary injunction: the likelihood of success on the merits at trial, whether the employer faces irreparable harm in the absence of an injunction, the burden to the defendants in issuing an injunction, and any public h ....

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