Avoid Overlap In Trade Secret And Misappropriation Claims

By Mareesa Frederick, Clara Jimenez and Alexander Poonai (October 10, 2018, 3:19 PM EDT) -- A plaintiff considering whether to assert trade secret misappropriation and patent infringement claims in the same lawsuit, must craft its damages theories carefully to avoid running afoul of the prohibition against double recovery. The issue — which can be a complex one — was a focus in the recent Federal Circuit decision, Texas Advanced Optoelectronic Solutions Inc. v. Renesas Electronics America Inc.[1] In that case, the court held that a plaintiff could not recover damages for both trade secret misappropriation and patent infringement, where the award for infringement was based on a subset of the sales that formed the basis of the award for misappropriation. In reaching its conclusion, the Federal Circuit reaffirmed the long-standing prohibition against double recovery and, in doing so, provided useful insights for litigants seeking damages on both patent and trade secret claims....

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