California Codes

Cal. Civil Code § 3426.3 (2026)

✓ current as of May 2026

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(a)A complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss.

(b)If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable royalty for no longer than the period of time the use could have been prohibited.

(c)If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subdivision (a) or (b).

Notes of Decisions

Cited in 60 cases (28 in the last 5 years), 1992–2026 · leading case: Ajaxo Inc. v. E Trade Grp., Inc., 2005 Cal. Daily Op. Serv. 10730 (Cal. Ct. App. 2005).

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Ajaxo Inc. v. E Trade Grp., Inc., 2005 Cal. Daily Op. Serv. 10730 (Cal. Ct. App. 2005). · cites it 2× “Then, Ajaxo cites a plethora of cases that it asserts show damages for misappropriation based upon a wide variety of measures, and that do not have to be shown with precision.”

02 Micro Int'l Ltd. v. Monolithic Power Sys., Inc., 399 F. Supp. 2d 1064 (N.D. Cal. 2005). · cites it 3× “California Civil Code § 3426.3(b) (“If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable royalty for no longer than the period of time the use could have been prohibited.”

Copart, Inc. v. Sparta Consulting, Inc., 277 F. Supp. 3d 1127 (E.D. Cal. 2017). · cites it 2× “” Cal. Civ. Code § 3426.3 (a). However, if these are not provable, a party may instead recover a “reasonable royalty for no longer than the period of time the use could have been prohibited.”

Mattel, Inc. v. Mga Ent., Inc., 705 F.3d 1108 (9th Cir. 2013). · cites it 2× “See Cal. Civ. Code §§ 3426.3 (c), 3426.4. On remand, the district court shall dismiss MGA’s trade-secret claim without prejudice.”

Celeritas Tech., Ltd., Plaintiff/cross-Appellant v. Rockwell Int'l Corp., 150 F.3d 1354 (Fed. Cir. 1998). “See Cal. Civ.Code § 3426.3 (West 1997) (“A complainant may recover damages for the actual loss caused by misappropriation.”

Mattel, Inc. v. Mga Ent., Inc., 782 F. Supp. 2d 911 (C.D. Cal. 2011). “” Cal. Civ.Code § 3426.3. Mattel argues that MGA’s expert has failed to substantiate any specific loss caused by the alleged misappropriation of information about 111 of the 114 products about which Mattel’s employees allegedly fraudulently procured information.”

Integral Dev. Corp. v. Viral Tolat, 675 F. App'x 700 (9th Cir. 2017). “See Cal. Civ. Code § 3426.3 (a). Therefore, the district court properly granted summary judgment in favor of Tolat on Integral’s CUTSA claim, to the extent it is based on the information contained in Tolat’s resume or the business files Tolat allegedly copied and retained.”

O2 Micro Int'l Ltd. v. Monolithic Power Sys., Inc., 420 F. Supp. 2d 1070 (N.D. Cal. 2006). · cites it 2× “That same day, the Court entered judgment and 02 Micro was awarded “the sum of $900,000, for a reasonable royalty pursuant to California Civil Code section 3426.3(b), and $1,800,000, for exemplary damages pursuant to California Civil Code section 3426.”

Chin v. Advanced Fresh Concepts Franchise Corp., 194 Cal. App. 4th 704 (Cal. Ct. App. 2011). “, Civ. Code, § 3426.3 [California’s Uniform Trade Secrets Act (Civ.”

Unilogic, Inc. v. Burroughs Corp., 92 Cal. Daily Op. Serv. 8672 (Cal. Ct. App. 1992). “Civil Code section 3426.3 provides several measures of damages upon proof of misappropriation of trade secrets: “(a) A complainant may recover damages for the actual loss caused by misappropriation.”

ReadyLink Healthcare v. Cotton, 2005 Cal. Daily Op. Serv. 1336 (Cal. Ct. App. 2005). “) *1018 Civil Code section 3426.3, subdivision (a) of the UTSA allows a plaintiff to recover damages for losses caused by misappropriation of trade secrets, and Civil Code section 3426.”

Boland, Inc. v. Rolf C. Hagen (USA) Corp., 685 F. Supp. 2d 1094 (E.D. Cal. 2010). “Cal. Civ.Code § 3426.3(a). 14 Plaintiff claims that defendant misappropriated proprietary information “to solicit business from, and establish competitive business and contractual relationships with,” plaintiffs customers.”

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— Cal. Civil Code § 3426.3(a) — 3 cases

Bladeroom Grp. Ltd. v. Emerson Elec. Co. (9th Cir. 2021).

Lumentum Operations LLC v. nLIGHT Inc (W.D. Wash. 2024).

— Cal. Civil Code § 3426.3(b) — 4 cases

02 Micro Int'l Ltd. v. Monolithic Power Sys., Inc., 399 F. Supp. 2d 1064 (N.D. Cal. 2005). “California Civil Code § 3426.3(b) (“If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable royalty for no longer than the period of time the use could have been prohibited.”

O2 Micro Int'l Ltd. v. Monolithic Power Sys., Inc., 420 F. Supp. 2d 1070 (N.D. Cal. 2006). “That same day, the Court entered judgment and 02 Micro was awarded “the sum of $900,000, for a reasonable royalty pursuant to California Civil Code section 3426.3(b), and $1,800,000, for exemplary damages pursuant to California Civil Code section 3426.”

Atl. Inertial Sys., Inc. v. Condor Pac. Indus. of California, Inc., 545 F. App'x 600 (9th Cir. 2013).

Int'l Med. Devices, Inc. v. Robert Cornell (C.D. Cal. 2024).

— Cal. Civil Code § 3426.3(c) — 5 cases

Mattel, Inc. v. Mga Ent., Inc., 705 F.3d 1108 (9th Cir. 2013). “See Cal. Civ. Code §§ 3426.3 (c), 3426.4. On remand, the district court shall dismiss MGA’s trade-secret claim without prejudice.”

Mattel, Inc. v. Mga Ent., Inc., 801 F. Supp. 2d 950 (C.D. Cal. 2011).

Sorrento Therapeutics, Inc. v. Anthony Mack (Del. Ch. 2025).

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