The Latest in Rauch v. Radko
By Staff -- Gifts & Decorative Accessories, 9/21/2007 11:28:00 AM
Charlotte, NC — You win some, you lose some — at least if you’re seasonal decoration vendor Rauch Industries. In its ongoing civil litigation against former employee, ornament designer Christopher Radko, Rauch’s motion for a temporary restraining order was granted in part and denied in part.
For ten days, the court ordered Radko to stop competing with Rauch and encouraging others to stop doing business with Rauch; it also ordered Radko and Northstar (the Polish ornament manufacturer which Rauch alleges Radko secretly controls) to stop using Rauch trademarks, making false or misleading statements, and selling or advertising ornaments identical or “substantially similar” to Radko ornaments.
Though the order also directed Radko and Northstar to return any Rauch customer lists — along with 2008 product samples, sculpts, molds designs and other Rauch property — those provisions were stayed for ten days.
Both Radko and Northstar CFO Malgorzata Wierbicka objected to handing over molds and sculpts to Rauch on the grounds that they belong to Northstar, not Rauch, and are made by a process that Northstar considers a trade secret. Wierbicka also claimed that a product that Rauch claims is infringing its trade dress was designed by an artist other than Radko, and has been in its line for three years without complaint prior to this suit. Radko also said he should not be required to take affirmative action to compel the turnover of property because he has no authority to direct Northstar. He also pointed out that Rauch customer lists are available online, including at the Rauch-maintained Radko website, and in Rauch’s own court filings.
Radko also opposed a preliminary injunction on the grounds that Northstar had not yet been served to establish the Court’s jurisdiction, and because, he claimed, the balance of harm would weigh more heavily on Northstar than on Rauch.
Radko asked that the court require a bond equal to two year’s salary for Radko (or about $600,000) to secure the restraining order and any preliminary injunction. The court is required to set a bond, but can choose the amount. In addition, Radko opposed Rauch’s motion to seal the restraining order and injunction-related documents, citing the public’s interest in access (including ongoing coverage by Gifts & Decorative Accessories). and saying that the plaintiff’s request was too broad.
