{"id":2351,"date":"2021-10-25T03:56:38","date_gmt":"2021-10-25T03:56:38","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=2351"},"modified":"2022-05-09T20:08:02","modified_gmt":"2022-05-09T20:08:02","slug":"caci-4401-misappropriation-of-trade-secrets-essential-factual-elements","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4401-misappropriation-of-trade-secrets-essential-factual-elements\/","title":{"rendered":"CACI 4401 Misappropriation of Trade Secrets\u2014Essential Factual Elements"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3f2lyq-f7735b6310891ed9473df6251c96bba7\">\n#top .av-special-heading.av-kv3f2lyq-f7735b6310891ed9473df6251c96bba7{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv3f2lyq-f7735b6310891ed9473df6251c96bba7 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv3f2lyq-f7735b6310891ed9473df6251c96bba7 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv3f2lyq-f7735b6310891ed9473df6251c96bba7 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4401 Misappropriation of Trade Secrets\u2014Essential Factual Elements<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" 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action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3f3sez-5e6aa66a7bf8187348c24162a8157f0b\">\n#top .av_textblock_section.av-kv3f3sez-5e6aa66a7bf8187348c24162a8157f0b .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv3f3sez-5e6aa66a7bf8187348c24162a8157f0b '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4401\u00a0Misappropriation of Trade Secrets\u2014Essential Factual Elements<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has misappropriated a trade secret. To succeed on this claim, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [owned\/was a licensee of] [the following:][<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">describe each item claimed to be a trade secret that is subject to the misappropriation claim<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [this\/these] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">select short term to describe, e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [was\/were] [a] trade secret[s] at the time of the misappropriation;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] improperly [acquired\/used\/ [or] disclosed] the trade secret[s];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">4.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was harmed\/ [or] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was unjustly enriched]; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">5.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s [acquisition\/use\/ [or] disclosure] was a substantial factor in causing [[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s harm\/ [or] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] to be unjustly enriched]. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New December 2007; Revised December 2010, December 2014 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>In element 1, specifically describe all items that are alleged to be the trade secrets that were misappropriated. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Altavion, Inc. v. Konica Minolta Systems Laboratory, Inc.<\/span>\u00a0(2014) 226 Cal.App.4th 26, 43 [171 Cal.Rptr.3d 714].) If more than one item is alleged, include \u201cthe following\u201d and present the items as a list. Then in element 2, select a short term to identify the items, such as \u201cinformation,\u201d \u201ccustomer lists,\u201d or \u201ccomputer code.\u201d<\/p>\n<p>In element 1, select the appropriate term, \u201cowned\u201d or \u201cwas a licensee of,\u201d to indicate the plaintiff\u2019s interest in the alleged trade secrets. No reported California state court decision has addressed whether a licensee has a sufficient interest to assert a claim of trade secret misappropriation. These instructions take no position on this issue. The court should make a determination whether the plaintiff has the right as a matter of substantive law to maintain a cause of action for misappropriation of trade secrets if that issue is disputed.<\/p>\n<p>Read also\u00a0CACI No. 4402,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u201cTrade Secret\u201d Defined,<\/span>\u00a0to give the jury guidance on element 2.<\/p>\n<p>Civil Code section 3426.1(b)(1)\u00a0defines \u201cmisappropriation\u201d as improper \u201c[a]cquisition\u201d of a trade secret, and subsection (b)(2) defines it as improper \u201c[d]isclosure or use\u201d of a trade secret. In some cases, the mere acquisition of a trade secret, as distinguished from a related disclosure or use, will not result in damages and will only be relevant to injunctive relief. Because generally the jury should be instructed only on matters relevant to damage claims, do not select \u201cacquired\u201d in element 3 or \u201cacquisition\u201d in element 5 unless there is evidence that the acquisition resulted in damages, other than damages from related disclosure or use.<\/p>\n<p>To avoid confusion, instruct the jury only on the particular theory of misappropriation applicable under the facts of the case. For example, the jury should not be instructed on misappropriation through \u201cuse\u201d if the plaintiff does not assert that the defendant improperly used the trade secrets. Nor should the jury be instructed on a particular type of \u201cuse\u201d if that type of \u201cuse\u201d is not asserted and supported by the evidence.<\/p>\n<p>Give also\u00a0CACI No. 4409,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Remedies for Misappropriation of Trade Secret<\/span>. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Uniform Trade Secrets Act: Definitions.\u00a0Civil Code section 3426.1.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Trade Secrets Must Be Identified With Reasonable Particularity.\u00a0Code of Civil Procedure section 2019.210.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA trade secret is misappropriated if a person (1) acquires a trade secret knowing or having reason to know that the trade secret has been acquired by \u2018improper means,\u2019 (2) discloses or uses a trade secret the person has acquired by \u2018improper means\u2019 or in violation of a nondisclosure obligation, (3) discloses or uses a trade secret the person knew or should have known was derived from another who had acquired it by improper means or who had a nondisclosure obligation or (4) discloses or uses a trade secret after learning that it is a trade secret but before a material change of position.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ajaxo Inc. v. E*Trade Group Inc.<\/span>\u00a0(2005) 135 Cal.App.4th 21, 66 [37 Cal.Rptr.3d 221].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA cause of action for monetary relief under CUTSA may be said to consist of the following elements: (1) possession by the plaintiff of a trade secret; (2) the defendant\u2019s misappropriation of the trade secret, meaning its wrongful acquisition, disclosure, or use; and (3) resulting or threatened injury to the plaintiff. The first of these elements is typically the most important, in the sense that until the content and nature of the claimed secret is ascertained, it will likely be impossible to intelligibly analyze the remaining issues.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Silvaco Data Systems v. Intel Corp.<\/span>\u00a0(2010) 184 Cal.App.4th 210, 220 [109 Cal.Rptr.3d 27], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA cause of action for misappropriation of trade secrets requires a plaintiff to show the plaintiff owned the trade secret; at the time of misappropriation, the information was a trade secret; the defendant improperly acquired, used, or disclosed the trade secret; the plaintiff was harmed; and the defendant\u2019s acquisition, use, or disclosure of the trade secret was a substantial factor in causing the plaintiff harm.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">AMN Healthcare, Inc. v. Aya Healthcare Services, Inc.<\/span>\u00a0(2018) 28 Cal.App.5th 923, 942 [239 Cal.Rptr.3d 577]\u00a0[citing CACI].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is critical to any [UTSA] cause of action\u2014and any defense\u2014that the information claimed to have been misappropriated be clearly identified. Accordingly, a California trade secrets plaintiff must, prior to commencing discovery, \u2018identify the trade secret with reasonable particularity.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Altavion, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 226 Cal.App.4th at p. 43.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe find the trade secret situation more analogous to employment discrimination cases. In those cases, as we have seen, information of the employer\u2019s intent is in the hands of the employer, but discovery affords the employee the means to present sufficient evidence to raise an inference of discriminatory intent. The burden of proof remains with the plaintiff, but the defendant must then bear the burden of producing evidence once a prima facie case for the plaintiff is made. [\u00b6] We conclude that the trial court correctly refused the proposed instruction that would have shifted the burden of proof.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Sargent Fletcher, Inc. v. Able Corp.<\/span>\u00a0(2003) 110 Cal.App.4th 1658, 1674 [3 Cal.Rptr.3d 279], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]e find no support for [a current-ownership] rule in the text of the CUTSA, cases applying it, or legislative history. Nor do we find any evidence of such a rule in patent or copyright law, which defendants have cited by analogy. Defendants have offered no persuasive argument from policy for our adoption of such a rule.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jasmine Networks, Inc. v. Superior Court<\/span>\u00a0(2009) 180 Cal.App.4th 980, 986 [103 Cal.Rptr.3d 426].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he only California authority [defendant] cited for the asserted requirement [that a trade-secrets plaintiff must own the trade secret when the action is filed] was the official California pattern jury instructions\u2014whose \u2018first element,\u2019 [defendant] asserted, \u2018requires the plaintiff to be either the owner or the licensee of the trade secret. See\u00a0CACI Nos. 4400,\u00a04401.\u2019 [Defendant] did not quote the cited instructions\u2014for good reason. The most that can be said in favor of its reading is that the broader and less specific of the two instructions uses the present tense to refer to the requirement of ownership. That instruction, whose avowed purpose is \u2018to introduce the jury to the issues involved\u2019 in a trade secrets case (Directions for Use for\u00a0CACI No. 4400), describes the plaintiff as claiming that he \u2018is\u2019 the owner\/licensee of the trade secrets underlying the suit. (CACI No. 4400.) The second instruction, which enumerates the actual\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">elements<\/span>\u00a0of the plaintiff\u2019s cause of action, dispels whatever weak whiff of relevance this use of the present tense might have. It requires the plaintiff to prove that he \u2018own<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">ed<\/span>\u2019 or \u2018was a licensee of\u2019 the trade secrets at issue. (CACI No. 4401, italics added.) Given only these instructions to go on, one would suppose that past ownership\u2014i.e., ownership at the time of the alleged misappropriation\u2014is sufficient to establish this element.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jasmine Networks, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 180 Cal.App.4th at p. 997, original italics.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>Gaab and Reese, California Practice Guide: Civil Procedure Before Trial\u2014Claims &amp; Defenses, Ch. 10(II)-A \u00b6\u200910:250 (The Rutter Group)<\/div>\n<div>1 Milgrim on Trade Secrets, Ch. 1,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Definitional Aspects<\/span>, \u00a7\u20091.01 (Matthew Bender)<\/div>\n<div>Zamore, Business Torts, Ch. 17,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Trade Secrets<\/span>, \u00a7\u200917.05 et seq. (Matthew Bender)<\/div>\n<div>3 Levy et al.,\u00a0California Torts, Ch. 40,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit and Other Business Torts<\/span>, \u00a7\u200940.51\u00a0(Matthew Bender)<\/div>\n<div>49\u00a0California Forms of Pleading and Practice, Ch. 565,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>, \u00a7\u2009565.103[4]\u00a0(Matthew Bender)<\/div>\n<div>Edelson &amp; Kay, eds., Trade Secret Litigation and Protection in California (State Bar of California 2009) Chs. 1, 2, 6, 10, 11, 12<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7fuyvj-6b9d7f016937bf89f8847af687d37095 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-692z27-6ad9778211ef0dbf73849003c7335dcd\">\n#top .av_textblock_section.av-692z27-6ad9778211ef0dbf73849003c7335dcd .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-692z27-6ad9778211ef0dbf73849003c7335dcd '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2351","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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