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Misappropriation of a trade secret includes industrial or commercial espionage, breach of contract and breach of confidence, electronic surveillance, trespass, bribery, and fraud. It does not include "reverse engineering", where a company purchases a product and finds out how it works by laboratory analysis.
A person is guilty of theft and shall be punished pursuant to § 39-14-105 who, with intent to deprive or withhold from its owner the control of the trade secret, or with intent to appropriate a trade secret to the person's own use or to the use of another: Steals or embezzles an article representing a trade secret; or.
Punitive damages of up to twice the amount of actual loss may be available if the trade secret was willfully and maliciously appropriated. The decision of whether to seek enforcement of your trade secret rights in federal or state court depends on a number of factors.
Following a finding of misappropriation, a court may also award damages. Where the trade secret is ?willfully and maliciously misappropriated,? a court may award exemplary damages double the damages amount already awarded.
This doctrine holds that a third party is liable when the third party acquires a trade secret from another and then discloses or uses the secret under circumstances where he knows or should have known that the trade secret was wrongfully acquired.
secret defendant's best strategy is to show it only used its own or public information. Independent development is a complete defense to misappropriation because it destroys the plaintiff's third required showing.
Remedies that may be available Damages for the actual loss. Damages for unjust enrichment. Exemplary damages in cases of willful or malicious misappropriation. Attorney's fees for the prevailing party. Protective orders to preserve secrecy.
Under §1832(a) of the Economic Espionage Act, misappropriating a trade secret used in interstate commerce or foreign commerce may result in fines or imprisonment.