For businesses grappling with trade secret cases, an increasingly critical factor for claiming damages may be nestled not in the traditional metrics, but within the concept of exclusive rights’ loss. It is becoming apparent that the loss of exclusivity of a trade secret alone may form a substantial groundwork for damages, even in situations where commercialization of the trade secret is yet to ensue.
This emergent pattern is significantly exhibited in the recent decision by a Pennsylvania federal court in the case of Elite Transit v. Cunningham. The case, amongst others, adds to an expanding corpus of case law illuminating the potency held by loss of exclusivity in trade secret damages claims.
This concept often comes to the fore amidst disputes between corporations and their erstwhile employees, specifically when a former employee has obtained or maintained a company’s classified information but has not yet started contesting with the plaintiff. In these instances, plaintiffs might run into difficulties in quantifying damages given the delayed or absent commercial use of the misappropriated information.
Thus, as the landscape of trade secret cases evolves, businesses, corporate lawyers and legal professionals should note the propelled importance of exclusivity loss. It opens up avenues to claim damages even in scenarios where traditional elements like commercial use are absent, thereby reframing our understanding of trade secret cases and their possible outcomes. This shift could be instrumental in shaping future strategies for litigants addressing issues of trade secret misappropriation.