Category Archives: Remedies

Fifth Circuit Declines to Apply Restatement’s Burden Shifting Scheme in Proving Trade Secret Damages

Seal of the United States Court of Appeals for...
Image via Wikipedia

The Fifth Circuit reversed a denial of summary judgment on a misappropriation of trade secrets claim In MGE UPS Systems, Inc. v. GE Consumer and Industrial, Inc., et al., 612 F.3d 760 (5th Cir. 2010).  In that case, an owner of copyrighted software sued unauthorized user of the software for copyright infringement, misappropriation of trade secrets, unfair competition, and violation of Digital Millennium Copyright Act (DMCA). Continue reading

Tagged , , , , , , ,

Northern District Notes That Trade Secret Law Allows Recovery of Saved Development Costs

A section of the Oracle Corp. headquarters in ...
Image via Wikipedia

In a non-trade secrets intellectual property case, The Northern District of California noted, in dictum, that “trade secret law allows recovery of saved development costs.”  Oracle Corp. v. SAP AG, No. C 07-1658 PJH, — F.Supp.2d —-, 2010 WL 3258603, *14 (N.D. Cal. Aug. 17, 2010). Continue reading

Tagged , , , , , , ,

Sixth District Holds That Reasonable Royalties Available When a Defendant Has Not Realized a Profit or Other Calculable Benefit

E-Trade
Image by San Diego Shooter via Flickr

Today, in Ajaxo Inc. v. E*Trade Financial Corporation, — Cal.Rptr.3d —-, H033631, 2010 WL 3386479 (Cal. Ct. App. 6th Dist. Aug. 30, 2010), the Sixth District held that where a defendant has not realized a profit or other calculable benefit as a result of his or her misappropriation of a trade secret, unjust enrichment is not provable within the meaning of section 3426.3(b). Thus, the trial court had discretion pursuant to section 3426.3(b) to order payment of a reasonable royalty.

Plaintiff Ajaxo Inc. (Ajaxo), sued defendant E*Trade Financial Corporation (E*Trade) for misappropriation of trade secrets under the California Uniform Trade Secret Act.  E*Trade was found liable in a prior jury trial, where a jury determined that E*Trade had willfully and maliciously misappropriated Ajaxo’s trade secrets.  Id. *1.  A second trial determined the extent to which E*Trade had been unjustly enriched by its misappropriation.  Id. Continue reading

Tagged , , , , , , ,

Saved Development Costs Available as Measure of Damages

500 Oracle Parkway at the Oracle Corp. headqua...
Image via Wikipedia

Judge Phyllis J. Hamilton of the Northern District of California issued an order this week on motions for partial summary judgment in Oracle Corp. v. SAP AG, et al., No. C 07-1658 PJH, 2010 WL 3258603 (N.D. Cal. Aug. 17, 2010) (slip op.).   In considering whether recovery of “saved development costs” is an available measure of damages, the court  distinguished Ajaxo, Inc. v. E*Trade Group, Inc., 135 Cal. App. 4th 21 (2005);

Continue reading

Tagged , , , , , , ,