Tracer Research Corp. v. National Environmental Services Company, Doing Business as Nesco Lab One Analytical, Inc. Eddy Paterson Albert McCutchan

Tracer Research Corporation appeals the district court’s order dissolving a preliminary injunction that had prevented National Environmental Service Company, Lab One Analytical, Eddy Paterson and Albert McCut-chan from pursuing their business in tank and pipeline leak detection using chemical tracers. We have jurisdiction to review the district court’s order dissolving the preliminary injunction under 28 U.S.C. § 1292 (a)(1) and reverse.

BACKGROUND

Tracer Research developed and uses a chemical tracer process that can detect leaks from storage tanks and pipelines into surrounding soil. Tracer markets this process through licensing agreements, like the one it entered into with NESCO in 1990. In addition, NESCO signed a' confidentiality and nondisclosure agreement. In late 1992 the parties terminated their licensing agreement. According to Tracer, the defendants nonetheless continued to use trade secrets and confidential information obtained from Tracer under the terms of the parties’ licensing agreement. The defendants contend that (1) after NESCO terminated the licensing agreement, they continued in business with an alternative leak detection method (known as Search), and (2) no…