Tennessee Code Annotated
Tenn. Code Ann. § 47-25-1704 (2024)
Damages
✓ Justia copy: laws through about 2024 (2025 and 2026 sessions missing)
- (a) In addition to or in lieu of the relief provided by § 47-25-1703, a complainant is entitled to recover damages for misappropriation except to the extent that defendant can show a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation and such renders a monetary recovery inequitable. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized disclosure or use of a trade secret.
- (b) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a).
Acts 2000, ch. 647, § 4.
Notes of Decisions
Cited in 7
cases (3 in the last 5 years), 2008–2024 · leading case: Cardinal Health 414, Inc. v. Adams, 582 F. Supp. 2d 967 (M.D. Tenn. 2008).
Cardinal Health 414, Inc. v. Adams, 582 F. Supp. 2d 967 (M.D. Tenn. 2008). “6 T.C.A. § 47-25-1704(a). The parties point the court to a six-factor test to determine whether information is a trade secret, which considers, for each alleged trade secret: (1) the extent to which the information is known outside of the business; (2) the extent to which it is…”
Williams-Sonoma Direct, Inc. v. Arhaus, LLC, 109 F. Supp. 3d 1009 (W.D. Tenn. 2015). “See § 47-25-1704 (stating that damages “can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss”).”
The Hamilton-Ryker Grp., LLC v. Tammy L. Keymon, No. W2008-00936-COA-R3-CV, 2010 WL 323057 (Tenn. Ct. App. Jan. 28, 2010). “§ 47-25-1703 (providing for injunctive relief); T.C.A. § 47-25-1704 (providing for damages).”
Univ. of Tennessee Rsch. Found. v. Caelum Biosciences, Inc., No. 3:19-cv-00508 (E.D. Tenn. July 11, 2024). “” Tenn. Code Ann. § 47-25-1704 (a). Unjust enrichment takes into consideration the “benefit to the defendant—not the loss to the plaintiff[.”
Knox Trailers, Inc v. Clark, No. 3:20-cv-00137 (E.D. Tenn. May 27, 2022). “” Tenn. Code Ann. § 47-25-1704 (a). Subsection (b) provides that, “[i]f willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a).”
Knox Trailers, Inc v. Clark, No. 3:20-cv-00137 (E.D. Tenn. May 21, 2021). “§ 47-25-1704. The Act defines a “trade secret” as: information, without regard to form, including, but not limited to, technical, nontechnical or financial data, a formula, pattern, compilation, program, device, method, technique, process, or plan that: (A) Derives independent…”
Julian Hinson, D/B/A Trivia Time v. Thom O'Rourke, No. M2014-00361-COA-R3-CV, 2015 WL 5033908 (Tenn. Ct. App. Aug. 25, 2015). “§ 47-25-1703 and § 47-25-1704. The term “trade secret” has a statutory definition that is similar to the common law definition: [I]nformation, without regard to form, including, but not limited to, technical, nontechnical or financial data, a formula, pattern, compilation,…”
Tenn. Code Ann. § 47-25-1704(a): 2 cases
Cardinal Health 414, Inc. v. Adams, 582 F. Supp. 2d 967 (M.D. Tenn. 2008). “6 T.C.A. § 47-25-1704(a). The parties point the court to a six-factor test to determine whether information is a trade secret, which considers, for each alleged trade secret: (1) the extent to which the information is known outside of the business; (2) the extent to which it is…”
The Hamilton-Ryker Grp., LLC v. Tammy L. Keymon, No. W2008-00936-COA-R3-CV, 2010 WL 323057 (Tenn. Ct. App. Jan. 28, 2010). “§ 47-25-1703 (providing for injunctive relief); T.C.A. § 47-25-1704 (providing for damages).”
Tenn. Code Ann. § 47-25-1704(b): 2 cases
The Hamilton-Ryker Grp., LLC v. Tammy L. Keymon, No. W2008-00936-COA-R3-CV, 2010 WL 323057 (Tenn. Ct. App. Jan. 28, 2010). “§ 47-25-1703 (providing for injunctive relief); T.C.A. § 47-25-1704 (providing for damages).”
Knox Trailers, Inc v. Clark, No. 3:20-cv-00137 (E.D. Tenn. May 27, 2022). “” Tenn. Code Ann. § 47-25-1704 (a). Subsection (b) provides that, “[i]f willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a).”
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