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In some cases, a trade secrets misappropriation plaintiff will file a motion seeking a preliminary injunction order that bars the defendant from using the trade secrets. The trade secrets misappropriation plaintiff better come to court locked and loaded because the outcome of this hearing can dictate the final outcome of the case. If the trade secrets misappropriation plaintiff wins at the preliminary injunction hearing stage, it will signal to the defendant that its defense of the case will likely not be successful. On the other hand, if the trade secrets misappropriation plaintiff loses at the preliminary injunction hearing stage, it will signal to the plaintiff that it will have to try the case, which will be expensive and time consuming that the plaintiff may not have expected. In many cases, the result of the preliminary injunction hearing will set the table for settlement discussions, with the prevailing party from the preliminary injunction hearing holding the stronger bargaining position.
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