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Intellectual Property,
California Courts of Appeal

May 1, 2024

California Court of Appeal clarifies elements of damages recoverable in trade secret misappropriation cases

In a case of first impression, the California Court of Appeal decided a novel issue related to the type of damages that are recoverable under the California Uniform Trade Secrets Act, concluding that a plaintiff may recover as “damages” the costs incurred by a forensic computer expert to stop or mitigate misappropriation.

Steven M. Zadravecz

Partner, Jones Day

Phone: (949) 851-3939

Email: szadravecz@jonesday.com

Univ of San Diego SOL; San Diego CA

Steve is a partner in the firm's Labor & Employment practice.

Randall E. Kay

Partner, Jones Day

4655 Executive Dr Ste 1500
San Diego , CA 92121-3134

Phone: (858) 314-1139

Email: rekay@jonesday.com

Univ of Michigan Law Sch; Ann Arbor MI

Randall works in the firm's Intellectual Property practice in San Diego. The views set forth herein are the personal views of the author and do not necessarily reflect those of the law firm with which he is associated.

Paige Christie

Associate, Jones Day

Labor & Employment

Shutterstock

For the first time, the California Court of Appeal ruled on recovery of forensic computer expert costs as monetary damages under the California Uniform Trade Secrets Act (CUTSA) in Applied Med. Distribution Corp. v. Jarrells, 100 Cal.App.5th 556 (2024).

At the time of trial in the underlying case, no California case addressed whether “actual loss caused by misappropriation” under California Civil Code section 34...

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