{"id":2359,"date":"2021-10-25T03:56:55","date_gmt":"2021-10-25T03:56:55","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=2359"},"modified":"2022-05-09T20:13:44","modified_gmt":"2022-05-09T20:13:44","slug":"caci-4409-remedies-for-misappropriation-of-trade-secret","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4409-remedies-for-misappropriation-of-trade-secret\/","title":{"rendered":"CACI 4409 Remedies for Misappropriation of Trade Secret"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3fekyl-0ba058d252c9c5f08ddb8f80b0e1377b\">\n#top .av-special-heading.av-kv3fekyl-0ba058d252c9c5f08ddb8f80b0e1377b{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv3fekyl-0ba058d252c9c5f08ddb8f80b0e1377b .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv3fekyl-0ba058d252c9c5f08ddb8f80b0e1377b .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv3fekyl-0ba058d252c9c5f08ddb8f80b0e1377b 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 4409 Remedies for Misappropriation of Trade Secret<\/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-kv3ffs6d-9ae0a3cab336032c6258072807e55da7\">\n#top .av_textblock_section.av-kv3ffs6d-9ae0a3cab336032c6258072807e55da7 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv3ffs6d-9ae0a3cab336032c6258072807e55da7 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4409\u00a0Remedies for Misappropriation of Trade Secret<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">If [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] proves that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] misappropriated [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] trade secret[s], then [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is entitled to recover damages if the misappropriation caused [[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] to suffer an actual loss\/ [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].<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[If [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s misappropriation did not cause [[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] to suffer an actual loss\/ [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], [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] may still be entitled to a reasonable royalty for no longer than the period of time the use could have been prohibited. However, I will calculate the amount of any royalty.] <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/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 <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>Give this instruction with\u00a0CACI No. 4401,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Misappropriation of Trade Secrets\u2014Essential Factual Elements<\/span>, in all cases.<\/p>\n<p>Select the nature of the recovery sought; either for the plaintiff\u2019s actual loss or for the defendant\u2019s unjust enrichment, or both. If the plaintiff\u2019s claim of actual injury or loss is based on lost profits, give\u00a0CACI No. 3903N,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Lost Profits (Economic Damage)<\/span>. If unjust enrichment is alleged, give\u00a0CACI No. 4410,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unjust Enrichment<\/span>.<\/p>\n<p>If neither actual loss nor unjust enrichment is provable,\u00a0Civil Code section 3426.3(b)\u00a0provides for a third, alternate remedy: a reasonable royalty for no longer than the period of time the use could have been prohibited. Both the statute and case law indicate that the question of a reasonable royalty should not be presented to the jury. (See\u00a0Civ. Code, \u00a7\u20093426.3(b)\u00a0[<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">the court<\/span>\u00a0may order the payment of a reasonable royalty];\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unilogic, Inc. v. Burroughs Corp.<\/span>\u00a0(1992) 10 Cal.App.4th 612, 628 [12 Cal.Rptr.2d 741]; see also\u00a0Civ. Code, \u00a7\u20093426.2(b)\u00a0[court may issue an injunction that conditions future of a trade secret on payment of a reasonable royalty].) However, no reported California state court case has directly held that \u201creasonable royalty\u201d issues should not be presented to the jury. (But see\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unilogic, Inc., supra,<\/span>\u00a010 Cal.App.4th at p. 627.) Include the optional second paragraph if the court wants to advise the jury that even if it finds that the plaintiff suffered no actual loss and that the defendant was not unjustly enriched, the plaintiff may still be entitled to some recovery.<\/p>\n<p>For simplicity, this instruction uses the term \u201cdamages\u201d to refer to both actual loss and unjust enrichment, even though, strictly speaking, unjust enrichment may be considered a form of restitution rather than damages. <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\">Remedies for Misappropriation of Trade Secret.\u00a0Civil Code section 3426.3.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cUnder subdivision (a), a complainant may recover damages for the actual loss caused by misappropriation, as well as for any unjust enrichment not taken into account in computing actual loss damages. Subdivision (b) provides for an alternative remedy of the payment of royalties from future profits where \u2018neither damages nor unjust enrichment caused by misappropriation [is] provable.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ajaxo Inc. v. E*Trade Group Inc.<\/span>\u00a0(2005) 135 Cal.App.4th 21, 61 [37 Cal.Rptr.3d 221].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[B]ased on the plain language of the statute, the Court\u2014not the jury\u2014determines if and in what amount a royalty should be awarded. See Cal. Civ. Code section 3416.3(b) (\u2018the Court may order payment of a reasonable royalty\u2019).\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">FAS Techs. v. Dainippon Screen Mfg.<\/span>\u00a0(N.D. Cal. 2001) 2001 U.S. Dist. LEXIS 15444, **9\u201310.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTo adopt a reasonable royalty as the measure of damages is to adopt and interpret, as well as may be, the fiction that a license was to be granted at the time of beginning the infringement, and then to determine what the license price should have been. In effect, the court assumes the existence\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">ab initio<\/span>\u00a0of, and declares the\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">equitable<\/span>\u00a0terms of, a supposititious license, and does this\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nunc pro tunc<\/span>; it creates and applies retrospectively a compulsory license.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Altavion, Inc. v. Konica Minolta Systems Laboratory, Inc.<\/span>\u00a0(2014) 226 Cal.App.4th 26, 68 [171 Cal.Rptr.3d 714], original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cNor was it necessary to submit the liability issue to the jury in order to allow the trial court thereafter to determine a reasonable royalty or to impose an injunction. Just as [cross complainant] presented no evidence of the degree of [cross defendant]\u2019s enrichment, [cross complainant] likewise presented no evidence that would allow the court to determine what royalty, if any, would be reasonable under the circumstances.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unilogic, Inc. supra,<\/span>\u00a010 Cal.App.4th at p. 628.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is settled that, in fashioning a pecuniary remedy under the CUTSA for past use of a misappropriated trade secret, the trial court may order a reasonable royalty only where \u2018neither actual damages to the holder of the trade secret nor unjust enrichment to the user is provable.\u2019 \u2018California law differs on this point from both the [Uniform Act] and Federal patent law, neither of which require[s] actual damages and unjust enrichment to be unprovable before a reasonable royalty may be imposed.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ajaxo Inc. v. E*Trade Financial Corp.<\/span>\u00a0(2010) 187 Cal.App.4th 1295, 1308 [115 Cal.Rptr.3d 168], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]here a defendant has not realized a profit or other calculable benefit as a result of his or her misappropriation of a trade secret, unjust enrichment is not provable within the meaning of section 3426.3, subdivision (b), whether the lack of benefit is determined as a matter of law or as a matter of fact. To hold otherwise would place the risk of loss on the wronged plaintiff, thereby discouraging innovation and potentially encouraging corporate thievery where anticipated profits might be minimal but other valuable but nonmeasureable benefits could accrue.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Ajaxo Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 187 Cal.App.4th at p. 1313\u00a0[jury\u2019s finding that defendant did not profit from its misappropriation of trade secrets means that unjust enrichment is not \u201cprovable\u201d within the meaning of section 3426.3(b)].) <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>13 Witkin, Summary of California Law (11th ed. 2017) Equity, \u00a7\u00a7\u200992\u201393<\/div>\n<div>Gaab &amp; Reese, California Practice Guide: Civil Procedure Before Trial\u2014Claims &amp; Defenses, Ch. 10(II)-E \u00b6\u00b6\u200910:370\u201310:372 (The Rutter Group)<\/div>\n<div>1\u00a0Milgrim on Trade Secrets, Ch. 15,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Trial Considerations<\/span>, \u00a7\u200915.02\u00a0(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\u200940.54\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[6],\u00a0[7]\u00a0(Matthew Bender)<\/div>\n<div>Edelson &amp; Kay, eds., Trade Secret Litigation and Protection in California (State Bar of California 2009) Ch. 11<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-87kwt3-c4fe263c8273a557088b7fa2d5bcc13a 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-69wrlj-82ecc4261da534d103e1625c802fc8a4\">\n#top .av_textblock_section.av-69wrlj-82ecc4261da534d103e1625c802fc8a4 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-69wrlj-82ecc4261da534d103e1625c802fc8a4 '   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-2359","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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