Illinois Federal Court Issues Preliminary Injunction Prohibiting Use Of Misappropriated Trade Secrets But Rejects Request For Expanded Injunction Based On Alleged “Inevitable Disclosure”

A recent Illinois trade secrets and non-compete decision involving a 3D printing salesman serves as a reminder that some Illinois courts will scrutinze overly broad non-compete provisions and may limit injunctive relief to the territory that the employee actually serviced for their former employer. Fisher/Unitech, Inc. v. Computer Aided Technology, Inc., Case No. 13 C 2090 (N.D.Ill., 4/9/13).

Preliminary injunction granted.  The salesman signed an employment agreement containing confidentiality and non-compete provisions.  Subsequently, after accepting a position with a competitor, he allegedly misappropriated his former employer’s trade secrets and provided them to his new employer.  His former employer filed suit in an Illinois federal court.  On the plaintiff’s motion, the court entered a preliminary injunction barring the salesman, while the case was pending, from (a) using or disclosing his former employer’s confidential information in his former territory, and (b) selling his new employer’s competitive products or services to any customer or potential customer with whom he had contact during his previous employment.  But his former employer was not satisfied.

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