Trade Secrets: Remedies

  • May not use particular trade secret
  • How long should it last? Trade secrets do not have limited terms!
  • Courts try to undo damage defendant did, try to guess how long it would have taken thief to figure out by legitimate means, and set injunction to that time.
  • In lieu or in addition to injunction
  • Reasonable royalty approach: what court thinks trade secret holder would have charged as a licensing fee.
  • Actual loss approach: what did misappropriation cost trade secret holder in lost sales? Compare sales defendant made vs. how many plaintiff lost.
  • Treble damages allowed under UTSA for "willfullnes"
Criminal Penalties
  • State law crimes (California, for example)
  • Federal crimes, like the Economic Espionage Act
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