District of Columbia Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty
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FAQ
In ance with the Uniform Trade Secrets Act, courts may award the following types of remedies: Damages for the actual loss. Damages for unjust enrichment. Exemplary damages in cases of willful or malicious misappropriation.
Trade secret misappropriation occurs when a trade secret has been wrongfully taken or disclosed without consent. A trade secret is defined as information (1) that derives independent economic value from not being generally known, and (2) which has been the subject of reasonable efforts to be kept a secret.
The statute defines ?Trade Secret? to mean ?all forms and types of financial, business, scientific, technical, economic, or engineering information,? provided that ?the owner thereof has taken reasonable measures to keep such information secret? and ?the information derives independent economic value, actual or ...
Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use. "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
For the first time, the DTSA gives American companies the opportunity to protect against and remedy misappropriation of important propriety information in federal court. Businesses should be aware of the salient provisions of the DTSA discussed below in order to adequately prepare to employ the protections of the DTSA.
Specifically, the Court found that plaintiff did not sufficiently allege ?misappropriation.? Under the DTSA, misappropriation entails (1) acquiring a trade secret by improper means, or (2) disclosing or using the trade secret without consent.
Breaches of non-disclosure agreements, industrial espionage, theft, fraud, and bribery are all improper means of acquiring a trade secret. For example, if you hack into a company's computer and copy the files, this act of acquiring the secrets improperly is misappropriation.
A prima facie claim for misappropriation of trade secrets requires the plaintiff to demonstrate: (1) the plaintiff owned a trade secret; (2) the defendant acquired, disclosed, or used the plaintiff's trade secret through improper means; and (3) the defendant's actions damaged the plaintiff. (Cal. Civ.