(a) Except as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding misappropriation for the period that the trade secret exists plus an additional period as the court may deem necessary under the circumstances to eliminate any inequitable or unjust advantage arising from the misappropriation.
(1) If the court determines that it would be unreasonable to enjoin use after a judgment finding misappropriation, an injunction may condition such use upon payment of a reasonable royalty for any period the court may deem just. In appropriate circumstances, affirmative acts to protect the trade secret may be compelled by order of the court.
(2) A person who in good faith derives knowledge of a trade secret from or through misappropriation or by mistake, or any other person subsequently acquiring the trade secret therefrom or thereby, shall be enjoined from disclosing the trade secret, but no damages shall be awarded against any person for any misappropriation prior to the time the person knows or has reason to know that it is a trade secret. If the person has substantially changed his position in good faith reliance upon the availability of the trade secret for future use, he shall not be enjoined from using the trade secret but may be required to pay a reasonable royalty as deemed just by the court. If the person has acquired inventory through such knowledge or use of a trade secret, he can dispose of the inventory without payment of royalty. If his use of the trade secret has no adverse economic effect upon the owner of the trade secret, the only available remedy shall be an injunction against disclosure.
(b) In addition to the relief authorized by subsection (a), actual damages may be recovered, measured by the economic loss or the unjust enrichment caused by misappropriation of a trade secret, whichever is greater.
(c) If willful and malicious misappropriation exists, the trier of fact also may award punitive damages in its discretion.
(d) If a claim of misappropriation is made in bad faith or if willful and malicious misappropriation exists, the court may award reasonable attorneys' fees to the prevailing party. (1981, c. 890, s. 1.)
Notes of Decisions
Bruning & Federle Mfg. Co. v. D. MILLS, 647 S.E.2d 672 (N.C. Ct. App. 2007).
· cites it 24× “§ 6-21 does not itself form the legal basis for an award of attorney fees in a TSPA case; rather, it only allows such award (1) if the conditions provided in N.C. Gen. Stat. § 66-154 (d) exist, and (2) if the Court then exercises its discretion to award attorney fees based on…”
Silicon Knights, Inc. v. Epic Games, Inc., 917 F. Supp. 2d 503 (E.D.N.C. 2012).
· cites it 14× “” N.C. Gen.Stat. § 66-154(a). The federal Copyright Act similarly permits a court to grant a permanent injunction “on such terms as it may deem reasonable to prevent or restrain infringement of a copyright.”
Horner Int'l Co. v. McKoy, 754 S.E.2d 852 (N.C. Ct. App. 2014).
· cites it 4× “” N.C. Gen. Stat. § 66-154 (a) (2013) (emphasis added).”
Visionair, Inc. v. James & Colossus Inc., 606 S.E.2d 359 (N.C. Ct. App. 2004).
· cites it 2× “The North Carolina Trade Secrets Protection Act provides that “actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding misappropriation.”
Med. Staffing Network, Inc. v. Ridgway, 670 S.E.2d 321 (N.C. Ct. App. 2009).
· cites it 2× “” N.C. Gen. Stat. § 66-154 (b) (2007). The damages award, as stated in the trial court’s order, does not specify the portion of damages that is attributable to the misappropriation claim.”
Potter v. Hilemn Labs., Inc., 564 S.E.2d 259 (N.C. Ct. App. 2002).
· cites it 4× “See N.C. Gen. Stat. § 66-154 (b) (1999). Accordingly, the court took the total amount of sales of the product that included Substance X, $953,388.”
Analog Devices, Inc. v. Michalski, 579 S.E.2d 449 (N.C. Ct. App. 2003).
· cites it 2× “” N.C. Gen. Stat. § 66-154 (2001). Misappropriation is defined as the “acquisition, disclosure, or use of a trade secret of another without express or implied authority or consent, unless such trade secret was arrived at by independent development, reverse engineering, or was…”
RLM Commc'ns, Inc. v. Tuschen, 66 F. Supp. 3d 681 (E.D.N.C. 2014).
· cites it 4× “§ 66-154(a) (authorizing remedy of permanent injunctive relief “upon judgment finding misappropriation for the period that [a] trade secret exists plus an additional period as the court may deem necessary under the circumstances to eliminate any inequitable or unjust advantage…”
Merck & Co. Inc. v. Lyon, 941 F. Supp. 1443 (M.D.N.C. 1996).
· cites it 4× “N.C.Gen.Stat. § 66-154(a). To be entitled to relief, plaintiffs must prove the existence of trade secrets.”
Philips Elec. North Am. Corp. v. Hope, 631 F. Supp. 2d 705 (M.D.N.C. 2009).
· cites it 3× “” N.C. Gen.Stat. § 66-154(a). A “trade secret” is defined as: business or technical information, including but not limited to a formula, pattern, program, device, compilation of information, method, technique, or process that: a.”
FMC Corp. v. Cyprus Foote Mineral Co., 899 F. Supp. 1477 (W.D.N.C. 1995).
· cites it 5× “*1481 North Carolina’s Trade Secrets Protection Act provides that “[e]xcept as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding…”
— N.C. Gen. Stat. § 66-154(a) — 10 cases
Silicon Knights, Inc. v. Epic Games, Inc., 917 F. Supp. 2d 503 (E.D.N.C. 2012).
“” N.C. Gen.Stat. § 66-154(a). The federal Copyright Act similarly permits a court to grant a permanent injunction “on such terms as it may deem reasonable to prevent or restrain infringement of a copyright.”
RLM Commc'ns, Inc. v. Tuschen, 66 F. Supp. 3d 681 (E.D.N.C. 2014).
“§ 66-154(a) (authorizing remedy of permanent injunctive relief “upon judgment finding misappropriation for the period that [a] trade secret exists plus an additional period as the court may deem necessary under the circumstances to eliminate any inequitable or unjust advantage…”
Philips Elec. North Am. Corp. v. Hope, 631 F. Supp. 2d 705 (M.D.N.C. 2009).
“” N.C. Gen.Stat. § 66-154(a). A “trade secret” is defined as: business or technical information, including but not limited to a formula, pattern, program, device, compilation of information, method, technique, or process that: a.”
Merck & Co. Inc. v. Lyon, 941 F. Supp. 1443 (M.D.N.C. 1996).
“N.C.Gen.Stat. § 66-154(a). To be entitled to relief, plaintiffs must prove the existence of trade secrets.”
— N.C. Gen. Stat. § 66-154(a)(l) — 1 case
FMC Corp. v. Cyprus Foote Mineral Co., 899 F. Supp. 1477 (W.D.N.C. 1995).
“*1481 North Carolina’s Trade Secrets Protection Act provides that “[e]xcept as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding…”
— N.C. Gen. Stat. § 66-154(b) — 6 cases
Silicon Knights, Inc. v. Epic Games, Inc., 917 F. Supp. 2d 503 (E.D.N.C. 2012).
“” N.C. Gen.Stat. § 66-154(a). The federal Copyright Act similarly permits a court to grant a permanent injunction “on such terms as it may deem reasonable to prevent or restrain infringement of a copyright.”
FMC Corp. v. Cyprus Foote Mineral Co., 899 F. Supp. 1477 (W.D.N.C. 1995).
“*1481 North Carolina’s Trade Secrets Protection Act provides that “[e]xcept as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding…”
— N.C. Gen. Stat. § 66-154(c) — 5 cases
FMC Corp. v. Cyprus Foote Mineral Co., 899 F. Supp. 1477 (W.D.N.C. 1995).
“*1481 North Carolina’s Trade Secrets Protection Act provides that “[e]xcept as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding…”
— N.C. Gen. Stat. § 66-154(d) — 11 cases
Bruning & Federle Mfg. Co. v. D. MILLS, 647 S.E.2d 672 (N.C. Ct. App. 2007).
“§ 6-21 does not itself form the legal basis for an award of attorney fees in a TSPA case; rather, it only allows such award (1) if the conditions provided in N.C. Gen. Stat. § 66-154 (d) exist, and (2) if the Court then exercises its discretion to award attorney fees based on…”
Silicon Knights, Inc. v. Epic Games, Inc., 917 F. Supp. 2d 503 (E.D.N.C. 2012).
“” N.C. Gen.Stat. § 66-154(a). The federal Copyright Act similarly permits a court to grant a permanent injunction “on such terms as it may deem reasonable to prevent or restrain infringement of a copyright.”
Merck & Co. Inc. v. Lyon, 941 F. Supp. 1443 (M.D.N.C. 1996).
“N.C.Gen.Stat. § 66-154(a). To be entitled to relief, plaintiffs must prove the existence of trade secrets.”
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