In the AMS-OSRAM USA Inc. v. Renesas Electronics America decision, the Federal Circuit offered crucial insights into trade secret remedies under Texas law. It determined that a trade secret is deemed 'properly accessible' when it could have been reverse-engineered, which impacts the timeframe for calculating damages. Additionally, the court ruled that plaintiffs could seek disgorgement of profits from a misappropriation design win during the calculated head-start period. Importantly, the decision allows for recovering damages for both trade secret misappropriation and breach of contract if they arise from distinct injuries or sales.
A trade secret becomes "properly accessible" when it could have been reverse-engineered rather than when it actually was reverse-engineered, limiting the appropriate "head-start period" for calculating damages.
Disgorgement of profits is proper for all sales arising from a misappropriation-based "design win" that occurred during the head-start period, even if actual sales occurred later.
A plaintiff may recover damages for both trade secret misappropriation and breach of contract when the damages are based on different sales or injuries.
Collection
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