“Lead Time” Injunctions

Originally published by Patrick Keating.

In some circumstances, a defendant who misappropriated a trade secret can avoid entry of a perpetual injunction prohibiting use of the trade secret.  A “lead time” injunction bars use of a trade secret for a limited period of time adequate to prevent the defendant from gaining a competitive advantage through use of the stolen trade secret.  For example, if a plaintiff’s trade secret could be reverse engineered by a competitor in one year, the plaintiff might only be entitled to an injunction of one year duration (rather than a perpetual injunction).

There is Texas case authority placing the burden of proof at trial on the Defendant to establish that an injunction of lesser duration than a perpetual injunction is adequate to protect the plaintiff’s rights.  See Halliburton Energy Svs. V. Axis Technologies, LLC, 444 S.W.3d 251, 257 (Tex. App.—Dallas 2014, no pet.);  Hyde Corp. v. Huffines, 314 S.W.2d 763, 776 (Tex. 1958).

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