What types of damages are available for trade secret misappropriation?
In California, a person or organization may be entitled to damages if their trade secret is misappropriated. Trade secret misappropriation occurs when someone unlawfully obtains, discloses, or uses the confidential information of another person or organization. Potential damages for trade secret misappropriation in California include actual, compensatory or compensatory damages, injunctive relief and/or reasonable attorney fees. Damages through compensatory damages may be awarded in order to make the injured party “whole again” and cover any losses that were caused by the misappropriation. These damages may include lost profits, reasonable royalties, or reasonable compensation for the misappropriation of the trade secrets. Injunctive relief, or a court order preventing the defendant from using or disclosing the trade secret, is also available if the trade secret was misappropriated in California. Injunctive relief is meant to prevent the defendant from further disclosing, using, or profiting from the trade secret. Finally, California also allows a successful plaintiff in a trade secret misappropriation case to be able to recover reasonable attorney’s fees. This encourages litigation as it relieves the burden of expensive legal costs. Overall, trade secret misappropriation in California can lead to various forms of damages, including compensatory damages, injunctive relief, and reasonable attorney fees. That being said, it is often difficult to prove trade secret misappropriation and a party must take the steps necessary to protect their trade secrets.
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