The value of a trade secret reflects its incremental improvement over-and-above non-secret information and what can be achieved with "clean room" development.
Damages for misappropriation of trade secrets are therefore determined relative to outcomes in a but-for hypothetical "but-for" marketplace in which the alleged misappropriating party chooses its best non-misappropriating alternative.
Damages can incorporate the patent holder's lost profits (including lost sales and price erosion, depending on the nature of the "but-for" marketplace), the misappropriating party's unjust enrichment, or a reasonable royalty that emerges from a hypothetical negotiation between a willing licensee and licensor and are informed by their respective non-misappropriating alternatives. Disgorgement can also be a remedy.
Experienced providing trade secret damages expert testimony and consulting on behalf of plaintiffs and defendants in many industries, including the following.