What damages are available under the Defend Trade Secrets Act?
The DTSA (18 U.S.C. section 1836) allows recovery of actual loss caused by the misappropriation plus any unjust enrichment not already counted in that loss. Alternatively, where those are hard to prove, the court may award a reasonable royalty for the unauthorized use of the trade secret.
Can trade secret damages be doubled?
Yes. If the misappropriation is willful and malicious, the DTSA and the Uniform Trade Secrets Act permit exemplary damages of up to two times the compensatory award, plus reasonable attorney fees. Bad faith claims or motions can conversely trigger fee awards against the losing party.
What is unjust enrichment in a trade secret case?
Unjust enrichment captures the benefit the defendant gained from using the secret — such as development costs avoided or profits earned — to the extent it is not already reflected in the plaintiff's actual loss. Combining actual loss and non-duplicative unjust enrichment prevents double recovery while capturing the full harm.
What is the reasonable royalty measure for trade secrets?
When neither actual loss nor unjust enrichment can be proven, courts may impose a reasonable royalty: the price a willing party would have paid to license the secret. It functions as a floor remedy, similar to reasonable royalty in patent law, ensuring the owner is compensated for the unauthorized use.