925 F. Supp. 2d 1120
D. Nev.2013Background
- Plaintiff owns trade secrets related to Guaraña Vodka formulation and bottling process.
- Former employee Dec allegedly disclosed/sold the trade secret to S & D Beverage LLC.
- Dec allegedly pressured a bottling company to cease production of Guaraña Vodka.
- Plaintiff filed four claims on January 16, 2013: trade secrets misappropriation, tortious interference, declaratory judgment, and breach of contract.
- Plaintiff seeks a TRO and preliminary injunction to preserve confidentiality before full merits are heard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Likelihood of success on the merits | Plaintiff will likely prove the formula is a trade secret | Defendant disputes sufficiency of secrecy and misappropriation | Plaintiff likely to succeed on the trade secret claim (formula) |
| Irreparable harm without relief | Disclosure would destroy the trade secret and harm competitive value | Harm could potentially be remedied by damages | Irreparable harm likely; presumption not required but not necessary for relief |
| Balance of equities | Protecting a valuable secret outweighs temporary burden on Defendants | Restraining order imposes cost on Defendants | Equities favor Plaintiff |
| Public interest | Protecting trade secrets serves public interest by preventing unfair competition | No contrary public interest justifies disclosure | Public interest does not defeat TRO; issuance favored |
Key Cases Cited
- Flynt Distrib. Co., Inc. v. Harvey, 734 F.2d 1389 (9th Cir. 1984) (weight given to preliminary relief when affidavits are inadmissible)
- Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7 (U.S. 2008) (set of four-factor test for injunctions; strict standards apply)
- Abercrombie & Fitch Co. v. Moose Creek, Inc., 486 F.3d 629 (9th Cir. 2007) (presumed irreparable harm in some contexts prior to eBay/Winter shift)
- Flexible Lifeline Sys., Inc. v. Precision Lift, Inc., 654 F.3d 989 (9th Cir. 2011) (limits presumption of irreparable harm after Supreme Court decisions)
- California Indep. Sys. Operator Corp. v. Reliant Energy Servs., Inc., 181 F. Supp. 2d 1111 (E.D. Cal. 2001) (preliminary injunction standard applied to TROs)
- Saini v. Int’l Game Tech., 434 F. Supp. 2d 913 (D. Nev. 2006) (disclosure of trade secrets as irreparable harm)