Posts by: Alex Fields

Courts Still Heavily Favor Rule 65 TROs Over DTSA Ex Parte Seizures

Temporary Restraining Order acronoym in front of gavel image Courts Still Heavily Favor Rule 65 TROs Over DTSA Ex Parte Seizures

The Defend Trade Secrets Act of 2016 was signed into law by President Obama on May 11, 2016. While the DTSA has been on the books for over a year, relatively few courts have addressed the ex parte seizure provision and even fewer have actually granted a seizure under the DTSA.  This is likely due to the DTSA’s requirement that courts order property seizures only in extraordinary circumstances.  In other words, courts are hesitant to grant DTSA ex parte seizure requests unless it is clear that the alleged misappropriator would disobey a TRO or preliminary injunction, or otherwise destroy, move, or hide trade secrets.  Courts continue to favor FRCP 65 TROs and preliminary injunctions to protect trade secrets from disclosure or destruction.  Under FRCP 65, courts can issue TROs and preliminary injunctions, but cannot order U.S. Marshalls to seize property from a defendant without notice.  The following cases are illustrative.

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Nice Try: Federal Circuit Denies Uber Engineer’s Writ, Affirming the District Court

In trade secret cases, it is often the case that a defendant company and employee accused of trade secret misappropriation enter into a joint defense agreement.  Often under such JDAs, facts, strategies and documents are shared with the understanding that they will remain confidential. READ MORE