When business owners discover an intellectual property violation by another company, such as a competitor infringing on their trademark, they often move to take immediate legal action. After all, trademark infringement could cause serious damage to their business.
Even if business owners file a lawsuit, what if the other business continues infringing on the trademark? This could cause even more damage.
One step that business owners should consider in these circumstances is obtaining an injunction.
WHAT IS AN INJUNCTION?
An injunction is a court order that forces an individual or entity to stop an offending action or take remedial action to prevent further harm to the business. While it is typically complex and time-sensitive to file, successfully seeking this extraordinary relief can help protect the business and reduce the risk of damage if owners face litigation over:
- Breach of contract or confidentiality agreements
- Trademark infringement
- Trade secret misappropriation
It is wise for business owners to obtain a preliminary or temporary injunction before the investigation begins and the lawsuit moves forward. Business owners can obtain permanent injunctions as well. However, this is often a step that owners can take after they resolve matters through litigation or alternative dispute resolution.
HOW CAN BUSINESS OWNERS OBTAIN AN INJUNCTION?
Seeking an injunction can be a critical protective measure for business owners. However, there are a few requirements business owners must fulfill to obtain this court order. Generally, owners must show:
- The continuance of this act committed by the other party would cause considerable harm to the business;
- Their need for an injunction does not jeopardize the other company or public interest;
- It would be difficult for the business to obtain compensation or relief from this action; and
- The plaintiff is likely to win if they proceed with the case, whether in or out of court.
Injunctions can be incredibly helpful when business owners face the risks involved with a lawsuit, but they must ensure they understand all of the guidelines and requirements to obtain an injunction under California law.