1. The owner of a trade secret may petition the district court to enjoin an actual or threatened misappropriation. Upon application to the district court, an injunction shall be terminated when the trade secret has ceased to exist. However, the injunction may be continued for an additional reasonable period of time in order to eliminate a commercial advantage that otherwise would be derived from the misappropriation.

Terms Used In Iowa Code 550.3

  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • knowledge: means that a person has actual knowledge of information or a circumstance or that the person has reason to know of the information or circumstance. See Iowa Code 550.2
  • Misappropriation: means doing any of the following:
     a. See Iowa Code 550.2
  • person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
  • Trade secret: means information, including but not limited to a formula, pattern, compilation, program, device, method, technique, or process that is both of the following:
     a. See Iowa Code 550.2
 2. In exceptional circumstances, an injunction may condition future use of a trade secret upon payment of a reasonable royalty. The payment of a royalty shall continue for a period no longer than the period for which use of the trade secret may be prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position of the person prior to acquiring knowledge of a misappropriation that renders a prohibitive injunction inequitable.
 3. In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order.
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