TRO Entered Where Owner Of Trade Secrets Made “Substantial” Efforts To Maintain Confidentiality

A federal court recently entered a TRO to prevent disclosure of trade secrets justifiably shared, in confidence, with business associates. When two of those associates made plans, clandestinely, to form a competing company, they were enjoined from disclosing the trade secrets even though they had not signed a confidentiality agreement. Exl Labs., LLC v. Egolf, 2010 U.S. Dist. LEXIS 131105 (E.D. Pa., Dec. 7, 2010). 

Plaintiff Exl manufactures dairy hygiene products. Non-party Lancaster is the exclusive dealer for Exl products in Pennsylvania. Non-party Beers is VP and GM of Exl and also is a member of the Board of Directors of Lancaster. On several occasions, Beers discussed Exl’s confidential information at Lancaster’s Board meetings, but Beers cautioned the directors not to disclose any of it to third parties. 

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