What types of damages are available in the United States for trade secret misappropriation?
In the United States, when a trade secret is misappropriated, the owner of the trade secret may be eligible to receive certain types of damages. The remedies available to protect trade secrets are often provided under state and/or federal law. In Arizona, under Arizona Revised Statutes (A.R.S.) 44-401, an owner of a trade secret can seek a court order to prevent or cease the misappropriation of a trade secret. Depending on the circumstances, the court can also order a misappropriator to turn over any profits that were made because of the misappropriation. If a trade secret is misappropriated, the owner can also bring a lawsuit for monetary damages. A court can award the trade secret owner either the actual damages incurred from the misappropriation, or the unjust enrichment (profits) gained by the misappropriator, whichever is greater. Since trade secrets are often difficult to value, courts may also use a reasonable royalty to calculate damages. In addition to awarding actual or punitive damages, the court can also order the defendant to pay the trade secret owner’s attorney’s fees. Lastly, the court can also issue an injunction to stop the misappropriation and prevent future misappropriation of the trade secret.
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