Monetary Damages for Misappropriation of Trade Secrets: Traditional and New Methodologies for Fair Compensation

In addition to injunctive relief, owners of misappropriated trade secrets can recover monetary damages, although recovery may be affected by other legal or equitable remedies sought. Counsel must act quickly and strategically from the outset in order to maximize potential recovery.

Calculating damages for misappropriation is an art rather than a science. While counsel can use several different methods (both new and traditional) to calculate actual loss, unjust enrichment, or reasonable royalties, the appropriate methodology for damages calculation varies from jurisdiction to jurisdiction. An adequate evidentiary basis must be asserted to trace the loss to the misappropriation and correctly allocate damages. Calculated damages must not be duplicative or speculative, but can invoke the time period involved, causation, and apportioning damages involving multiple trade secrets or multiple scenarios/products where trade secrets were used.

Listen as this premier panel of trade secret litigators discusses the standards for and the evidentiary basis needed to establish and calculate monetary damages for misappropriation of trade secrets.