Va. Code » Title 59.1. Trade and Commerce » Chapter 26. Uniform Trade Secrets Act
Virginia Code

Va. Code Ann. § 59.1-338 (2026)

Damages

✓ current as of May 2026
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A. Except where the user of a misappropriated trade secret has made a material and prejudicial change in his position prior to having either knowledge or reason to know of the misappropriation and the court determines that a monetary recovery would be inequitable, a complainant is entitled to recover damages for misappropriation. 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. If a complainant is unable to prove a greater amount of damages by other methods of measurement, the damages caused by misappropriation can be measured exclusively 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 punitive damages in an amount not exceeding twice any award made under subsection A of this section, or $350,000 whichever amount is less.

1986, c. 210; 1990, c. 344.

Notes of Decisions
Cited in 16 cases (3 in the last 5 years), 1993–2026 · leading case: Babcock & Wilcox Co. v. Areva NP, Inc., 788 S.E.2d 237 (Va. 2016).
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Babcock & Wilcox Co. v. Areva NP, Inc., 788 S.E.2d 237 (Va. 2016). · cites it 2× “The owner could not maintain a suit against him for damages arising from unlicensed use without pleading and proving the contract.”
Tao of Sys. Integration, Inc. v. Analytical Servs. & Materials, Inc., 299 F. Supp. 2d 565 (E.D. Va. 2004). · cites it 4× “Va. Code Ann. § 59.1-338 (Michie 2001). Under VUTSA, a trade secret is “information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process,” that (1) derives independent economic value from not being generally known, and…”
Collelo v. Geographic Servs., Inc., 727 S.E.2d 55 (Va. 2012). · cites it 6× “" Code § 59.1-338. The Trade Secrets Act also states that, "[i]f a complainant is unable to prove a greater amount of damages by other methods of measurement, the damages caused by misappropriation can be measured exclusively by imposition of liability for a reasonable royalty…”
Tao of Sys. Integration, Inc. v. Analytical Servs. & Materials, Inc., 330 F. Supp. 2d 668 (E.D. Va. 2004). · cites it 2× “Va. Code Ann. § 59.1-338 (Michie 2001). Absolute secrecy is not required to qualify for protection; the owner of a trade secret may disclose it to a licensee, an employee, or a stranger, if the disclosure is made in confidence, express or implied.”
SecureInfo Corp. v. Telos Corp., 387 F. Supp. 2d 593 (E.D. Va. 2005). · cites it 2× “Count XI: Violation of the Uniform, Trade Secrets Act of Virginia, Va.Code Ann. § 59.1-338, against Defendants Te-los, Xacta, and Mr.”
Newport News Indus. v. Dynamic Testing, Inc., 130 F. Supp. 2d 745 (E.D. Va. 2001). “§ 59.1-338. The injunctive relief provision allows a similar exemption by allowing an injunction against future use to be conditioned upon payment of a reasonable royalty in exceptional circumstances.”
Am. Sales Corp. v. Adventure Travel, Inc., 862 F. Supp. 1476 (E.D. Va. 1994). · cites it 3× “” The Virginia Uniform Trade Secrets Act [“the Act”], Va.Code Ann. § 59.1-338 (Michie 1992), sets out in specific language how damages are to be calculated in these cases, and there is sufficient case law for guidance.”
Appian Corp. v. Pegasystems (Va. 2026). · cites it 17× “VUTSA’s damages provision Damages under VUTSA are governed by Code § 59.1-338. In pertinent part, that section provides that: a complainant is entitled to recover damages for misappropriation.”
Univ. Support Servs., Inc. v. Galvin, 32 Va. Cir. 47 (Fairfax Cir. Ct. 1993). “Defendants misread the plain language of § 59.1-338(B) of the Virginia Code. That section states that “if willful and malicious misappropriation exists, the Court may award twice any award made under Subsection A of this section, or $350,000 whichever amount is less” (emphasis…”
Am. Sales Corp. v. Adventure Travel, Inc., 867 F. Supp. 378 (E.D. Va. 1994). · cites it 2× “Plaintiff next asks the Court to reconsider its refusal to award punitive damages and attorneys’ fees under the Virginia Uniform Trade Secrets Act [“the Act”], Va.Code Ann. § 59.1-338 (Michie 1992). The Act states that “if willful and malicious misappropriation exists, the court…”
Bryant v. Tomorrow's Resources Unlimited, Inc., 68 Va. Cir. 479 (Amherst Cir. Ct. 1998). · cites it 2× “Although the plaintiff does not make reference to this code section in the bill of complaint, the plaintiff in its brief maintains that he has alleged a cause of action under the Uniform Trade Secrets Act, § 59.”
Pegasystems Inc. v. Appian Corp. (Va. Ct. App. 2024). · cites it 8× “The trial court rejected Pega’s requests for instructions requiring Appian to prove that “Pega’s wrongful conduct was the proximate cause of Appian’s damages.”
Show all 16 citing cases →
— Va. Code Ann. § 59.1-338(A) — 5 cases
Babcock & Wilcox Co. v. Areva NP, Inc., 788 S.E.2d 237 (Va. 2016). “The owner could not maintain a suit against him for damages arising from unlicensed use without pleading and proving the contract.”
Collelo v. Geographic Servs., Inc., 727 S.E.2d 55 (Va. 2012). “" Code § 59.1-338. The Trade Secrets Act also states that, "[i]f a complainant is unable to prove a greater amount of damages by other methods of measurement, the damages caused by misappropriation can be measured exclusively by imposition of liability for a reasonable royalty…”
Pegasystems Inc. v. Appian Corp. (Va. Ct. App. 2024). “The trial court rejected Pega’s requests for instructions requiring Appian to prove that “Pega’s wrongful conduct was the proximate cause of Appian’s damages.”
Babcock & Wilcox v. AREVA (Va. 2016).
Appian Corp. v. Pegasystems (Va. 2026). “VUTSA’s damages provision Damages under VUTSA are governed by Code § 59.1-338. In pertinent part, that section provides that: a complainant is entitled to recover damages for misappropriation.”
— Va. Code Ann. § 59.1-338(B) — 1 case
Univ. Support Servs., Inc. v. Galvin, 32 Va. Cir. 47 (Fairfax Cir. Ct. 1993). “Defendants misread the plain language of § 59.1-338(B) of the Virginia Code. That section states that “if willful and malicious misappropriation exists, the Court may award twice any award made under Subsection A of this section, or $350,000 whichever amount is less” (emphasis…”
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