L.F. O'Connell Associates v. McGetrick

Intellectual Property

New York Law Journal

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Justice Elizabeth Emerson

Advertising and marketing agency L.F. O'Connell (LFO) moved for a preliminary injunction enjoining ex-employees McGetrick and Kerge from using or disclosing any of its confidential and proprietary information, intellectual property and trade secrets. LFO alleged defendants started their own company, Spark451, before their departure from LFO and copied the entire contents of LFO's computer server, containing confidential information. The court stated LFO established a likelihood of success on its claims sounding in unfair competition and misappropriation of trade secrets as it provided detailed, factual support for its allegations that defendants formed Spark451 before their termination, copied the computer server and stole its designs. It found defendants general denials were insufficient to rebut LFO's clear evidence. Also, LFO established irreparable injury, noting loss of client relationships and customer good will constituted irreparable harm for which injunctive relief was appropriate. Further, the balance of equities favored LFO as the irreparable harm to it if the injunction were not granted substantially outweighed any injury to defendants if it was granted.

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