""While implementing clean rooms may be time-consuming and expensive, companies would be remiss not to do so when developing products while having access to competitors' confidential information. Companies face substantial liability for trade secret misappropriation. Jury awards this year have reached staggering amounts: This year, a jury awarded $452 million to a medical device company, which was later reduced to $59.4 million in exchange for a permanent injunction.""
""The Computer Sciences decision provides critical guidance on trade secret handling under the Defend Trade Secrets Act (DTSA), clarifies what constitutes "willful and malicious" misappropriation, and establishes that exemplary damages may be awarded even where the plaintiff suffers no harm beyond lost profits. Factual Background Between 1994 and 2005, Computer Science Corporation (CSC) licensed software to Transamerica. In 2013, Transamerica hired TCS as a third-party consultant for maintenance services on CSC's platforms. In 2016, TCS secured a $2.6 bill""
""On November 21, 2024, the U.S. Court of Appeals for the Fifth Circuit in Computer Sciences Corp. v. Tata Consultancy Services Ltd. affirmed $56 million in compensatory damages, $112 million in punitive damages, a permanent injunction, and a 10-year monitorship against TCS-notably, TCS's second major trade secret verdict following a prior $140 million compensatory and $700 million punitive award (later reduced to $140 million) in Epic Systems Corp. v. Tata Consultancy Services Ltd., 980 F.3d 1117 (7th Cir. 2020).""
Recent litigation has produced multi-million-dollar compensatory and punitive awards, injunctions, and long-term monitorships for trade secret misappropriation. Courts have affirmed large verdicts against major firms, demonstrating significant exposure for companies that access competitors' confidential information. The Computer Sciences decision clarifies DTSA standards, defines "willful and malicious" misappropriation, and confirms that exemplary damages can be awarded even when the plaintiff's harm is limited to lost profits. Historical facts show third-party consultant relationships can lead to misappropriation liability. Implementing clean rooms, strict access controls, and compliance procedures reduces the risk of injunctions, exemplary damages, and long-term oversight.
Read at IPWatchdog.com | Patents & Intellectual Property Law
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