What types of damages are available in the United States for trade secret misappropriation?

In the United States, damages for trade secret misappropriation are available through state law, federal law, and common law. Under Texas state law, two types of damages are available. First, the law allows for actual damages for any losses sustained due to misappropriation. This can include lost profits, lost value, lost competitive advantage, or other economic losses suffered as a result of the misappropriation. Additionally, the law allows for punitive damages, which are designed to punish the wrongdoer for their misappropriation. This type of damage can only be awarded if the court determines that the defendant willfully or maliciously misappropriated the trade secret. Under federal law, damages are limited to actual damages and there is no provision for punitive damages. This law also allows for the payment of a reasonable royalty to the trade secret owner if the misappropriation results in the defendant profiting from the misappropriation. Finally, damages may also be available through common law claims. These claims, which include breach of contract and civil conspiracy, are based on state law, but they can also provide for punitive damages. In any case, if trade secret misappropriation is proven, the plaintiff may be eligible for one or more of the above-mentioned types of damages. A court will ultimately decide what, if any, damages should be awarded.

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