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Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

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Nội dung chi tiết: Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on DamagesgesDouglas G. Smith*Table of ContentsI.The Intersection of Patent and Trade SecretLaw................................................824II.Analysis of

Lost Profits Damages..................826A.The Panduit Factors............................827B.Reliable Economic Analysis and Reconstruction of theMa Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

rket.........................................834III.Analysis of Unjust Enrichment Damages.............836IV.Analysis of Royalty Damages...............

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

........841V.Disaggregation and Apportionment ofDamages............................................844VI.Other Common Limitations Based on theRelation

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages.Conclusion........................................865Trade secret misappropriation claims are increasingly utilized as a mechanism for enforcing inte

llectual property rights.* 1 While the law governing patent infringement claims has been developed over the entire length of our nation’s history, tra Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

de secret law remains comparatively undeveloped. This is particularly true in the area of damages• Associate, Kirkland & Ellis. Chicago, IL.; J.D., No

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

rthwestern University School of Law; M B A.. The University of Chicago; B.S./B.A., State University of New York at Buffalo. The views expressed in thi

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damagesr Misappropriation of Trade Secret, 22 Tort & Ins. L.J. 447. 4S6 (1987) (“Trade secret litigation has become an important factor of competition in cer

tain areas of business, such as the high-tech or the chemical industry ").821Seattle University Law Review [Vol. 25:821822analysis, where the Supreme Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

Court and the Federal Circuit have laid down bright-line rules in constructing a body of precedent that may be used in applying judicial scrutiny to d

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

amages claims in the context of patent infringement. This body of precedent stands in stark contrast to the patchwork of decisions by various courts a

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damagesere is a greater diversity in the rules that may be applicable in the context of trade secret damages claims despite efforts to provide a basis for un

iform rules.3 Moreover, at bottom, the number of cases addressing damages-related issues in the context of trade secret misappropriation is far fewer Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

than those addressing damages in the context of patent infringement claims.While better-developed patent law rules may not be applicable to trade secr

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

et misappropriation claims in every context, application of uniform criteria is particularly appropriate in the context of damages analysis. After all

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damageszing trade secret claims have intermittently applied frameworks developed in evaluating patent infringement claims. Nonetheless, despite the close par

allels, the law regarding trade secret damages remains relatively undeveloped in many respects.4This article attempts to demonstrate how damages princ Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

iples that have been developed in the context of patent infringement claims can2.See generally M. Rosenhouse, Annotation, Proper Measure and Elements

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

of Damages for Misappropriation of Trade Secrets, 11 A.L.R. 4th 12 (1982) (summarizing case law).3.See Telex Corp. V. IBM Corp., 510 F.2d 894, 930 (10

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages Adventure Travel, Inc., 862 F. Supp. 1476, 1479 (E.D. Va. 1994) ("Computing damages in a trade secrets case is not cut and dry."); Litton Sys., Inc.

V. Ssangyong Cement Indus. Co., 1993 \VL 317266, at •! (N.D. Ca. 1993); id. at *2 (observing that the principles governing trade secret damages “allow Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

broad latitude in fashioning appropriate remedies"); Restatement (Third) of unfair Competition § 45 Reporters Note (1995) ("The cases reflect conside

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

rable flexibility in the calculation of appropriate monetary relief in trade secret actions."); ABA Model Jury Instructions § 8.06(4]. at 400 (3d ed.

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damagesrisdiction, and may be subject to differing standards under various state laws”).4.There also seems to be a lack of scholarly commentary on this topic

. See Melvin F. Jager, Trade Secret Law § 7.03 (2001); Craig N. Johnson, Assessing Damages for Misappropriation of Trade Secrets, Colo. Law., Aug. 199 Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

8, at 71 [hereinafter Johnson, Assessing Damages]', Prandl, supra note 1, at 447-48 ("Courts have not yet uniformly decided on the standards applicabl

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

e to trade secret damages.... To date, courts have not developed a clear and consistent theory of trade secret damages.”); Rosenhousc, supra note 2; W

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damagesof trade secret claims. Courts should look more readily to the well-developed body of patent law in fashioning the rules governing damages in trade se

cret misappropriation cases. Adoption of such principles, modified where necessary to better fit the trade secret context, is likely to have the salut Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

ary effect of increasing the scrutiny given trade secret damages claims—weeding out those claims that are not sufficiently reliable to justify their s

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

ubmission to a jury?Courts in patent infringement cases have developed rigorous standards for testing and constraining damages claims.5 6 Increasingly

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damagesticals, Inc.7 Arguably, such rigorous standards are even more appropriate in the context of trade secrets, which by their very nature, are often less

concrete and intangible in terms of their value than a patent, which by definition must define a complete and workable process or machine.8 Trade secr Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

ets often relate to some small part of a process or machine and, by their very existence as “secrets,” may not be as readily subject to valuation in t

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

he marketplace. Because plaintiffs increasingly invoke both trade secret law and these factors inherent in trade secret claims, applying such rigorous

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages least one commentator has observed that parties historically have often been free to proffer whatever theory they deemed appropriate and submit that

theory to the jury:A review of recent trade secret cases does not offer a single solution to the damage issue. In many cases, courts have been guided Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

by the parties' arguments and proof at trial. Tria! counsel preparing for trade secret litigation is largely free to choose one or more of the standar

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims- Apportionment Alternatives and Other Common Limitations on Damages

ds applicable to trade secret damages. The monetary outcome of the trial will not so much depend on a theory underlying trade secret protection but on

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

Application of Patent Law Damages Analysis to Trade Secret Misappropriation Claims: Apportionment, Alternatives, and Other Common Limitations on Damag

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