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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.
Damages Under the California Uniform Trade Secrets Act and the Federal Trade Secrets Act. Both the DTSA and CUSTA provide for three types of damages: actual loss, unjust enrichment, and a reasonable royalty.
A plaintiff in a trade secret misappropriation case must show that the information was not in the public domain and that the owner of the alleged trade secret took reasonable measures to maintain its secrecy. Information cannot constitute a trade secret unless it gives the owner a competitive advantage.
18 U.S.C. § 1836(b)(1) (?IN GENERAL. ?An owner of a trade secret that is misappropriated may bring a civil action under this subsection if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.?).
These traditional remedies include injunctive relief, compensatory and exemplary damages, and attorney fees. Compensatory damage awards provide for the actual loss and unjust enrichment caused by the trade secret's misappropriation. Special circumstances may result in an exemplary damages award.
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.
In the United States, trade secrets are defined and protected by the Economic Espionage Act of 1996 (outlined in Title 18, Part I, Chapter 90 of the U.S. Code) and also fall under state jurisdiction. As a result of a 1974 ruling, each state may adopt its own trade secret rules.