X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Esha Bandyopadhyay, a principal in Fish & Richardson’s Silicon Valley office, Kain Day an associate Esha Bandyopadhyay, a principal in Fish & Richardson’s Silicon Valley office, and Kain Day, an associate with the firm.

In E.J. Brooks Co. v. Cambridge Security Seals, 105 N.E.3d 301 (N.Y. 2018), the New York Court of Appeals addressed two questions certified by the Second Circuit. In the underlying suit, E.J. Brooks claimed that several of its employees defected to Cambridge Security Seals—misappropriating E.J. Brooks’s trade secrets, engaging in unfair competition, and unjustly enriching Cambridge Security Seals. To measure damages, E.J. Brooks relied on the costs Cambridge avoided as a result of its unlawful activity.  Specifically, for the trade secret cause of action, E.J. Brooks claimed that Cambridge avoided certain development costs.

One question before the court of appeals—among related questions—was whether New York common law allowed E.J. Brooks to rely exclusively on Cambridge’s avoided costs to measure trade secret misappropriation damages. The Uniform Trade Secret Act, which has been adopted by almost each and every state, expressly permits this method of calculating damages. But New York has not adopted that act, and New York courts had not addressed this question. Over a strong dissent, the court held that the plaintiffs cannot solely rely on a defendant’s avoided costs to measure trade secret misappropriation damages.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

Law Firms Mentioned

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

Elite Trial Lawyers 2021Event

The National Law Journal Elite Trial Lawyers recognizes U.S.-based law firms performing exemplary work on behalf of plaintiffs.

Get More Information
 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.