Preliminary Injunctions Must Specifically Identify Protected Trade Secrets

Reviewing a preliminary injunction, the U. S. Court of Appeals for the Seventh Circuit vacated the injunction for failing to specifically identify protected trade secrets. Patriot Homes, Inc. v. Forest River Housing, Inc., 2008 U.S. App. LEXIS 444, Case No. 06-3012 (7th Cir., Jan.10, 2008) (Evans, J.).

The dispute arose between competing modular housing manufacturers. After failing to purchase Patriot, Forest River hired away four employees to form Sterling, a new subsidiary. The departing employees took computer files and other business materials. After Sterling distributed brochures including floor plans for homes identical to those sold by Patriot, Patriot filed suit seeking an injunction and damages for copyright and trade-secret violations. Sterling did not deny that the four employees took the information and used it, but instead asserted that the materials were in the public domain and were