Review of Denial of Injunctive Relief in Nm

A recent decision from the United States Commune Courtroom for the Commune of New Jersey highlights the perils of delay earlier applying for injunctive relief.   In PTT, LLC v. Gimme Games, et al.  No. 13-7161 (JLL/JAD), PTT, a slot motorcar programmer, sued competitor Gimme Games and former PTT executives who started Gimme Games, for misappropriation, unfair competition, and patent infringement.  More especially, PTT alleges in the pending lawsuit that Gimme Games creates slot car games with the same look and feel every bit PTT's games, particularly with respect to "oversize symbols."

The original complaint was filed on Nov 26, 2013, with the patent infringement merits filed past amended complaint soon later on PTT received its patent on May 27, 2014.  PTT thereafter applied for a temporary restraining order on August 21, 2014, approximately one calendar week after it discovered that the defendants maintained a Facebook page promoting the defendants' games with oversized symbols.

In denying PTT'due south awarding for injunctive relief, the courtroom referenced ii delays past PTT.  Showtime, the courtroom noted that PTT waited two months afterward becoming aware of the defendants' declared breach in September 2013 before filing its lawsuit in November 2013.  The court also noted the delay of about eleven months before PTT'southward application for injunctive relief in August 2014.  The courtroom cited its prior decision of Ultimate Trading Corp. v. Daus, where information technology had previously held a 5 calendar month delay in seeking a preliminary injunction was besides substantial to and so make a showing of irreparable harm.  Even putting aside the filibuster in seeking the injunctive relief, the court concluded that PTT could not substantiate whatever allegations of "currently existing immediate harm" to justify the injunctive relief it was requesting.

The court's decision should not surprise those familiar with the exigency standards and requirements mostly applicable to injunctive relief applications.  However, the court'southward closing comments in PTT drive home the importance of acting quickly, even where there is only a threat of a alienation.  The court noted the "office of preliminary injunctive relief is to preserve the condition quo pending a determination of the action on the claim …  The status quo to exist preserved is that situation existing immediately before the filing of the litigation, the last uncontested status which preceded the pending controversy."   The district court estimate suggested that to grant the injunctive relief requested after competitive activity was afoot, would not preserve the status quo but completely change information technology, and that "the prelitigation status quo would best be preserved past permitting the parties to remain in the state of gratuitous contest in the marketplace."

Under certain circumstances, injunctive relief could and should be granted fifty-fifty later on competitive activities have commenced, to prevent further solicitation and other unlawful activeness beyond the appointment of the application. Still, employers should be aware that some judges in other circumstances might not grant injunctive relief one time competitive activities are no longer a threat but a reality.  The more of import bulletin here, however, is that employers should be mindful of the agin risks an unexplained delay will nowadays to an application for equitable relief.

UPDATE

Equally a follow upwards to the to a higher place postal service, afterward the court denied PTT's application for injunctive relief, the defendants moved to dismiss the amended complaint alleging, amidst other things, that PTT failed to plausibly criminate the being of a trade hugger-mugger and its wrongful taking by the defendants, that PTT failed to allege a secondary meaning and that the products features are functional and not protectable, and that PTT had altered its alleged merchandise clandestine.  The court rejected these arguments and denied the defendants' motion as premature (although the courtroom dismissed the induced infringement claim without prejudice and with leave for PTT to improve inside xxx days).  The court looked to the pleadings standards of the Federal Rules of Civil Procedure, and held that during discovery, PTT will be required to provide, with precision,  "a description of the trade secrets at effect that is sufficient to (a) put the defendant on find of the nature of plaintiff's claims and (b) enable the defendant to determine the relevancy of any requested discovery concerning its merchandise secrets."

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Source: https://www.restrictivecovenantreport.com/2014/10/delay-leads-to-denial-of-request-for-injunctive-relief-in-new-jersey-lawsuit/