Statutory Royalty Damages under the Uniform Trade Secrets Act and the Federal Patent Code

Richard F. Dole, Jr. ยท 16 Vand. J. Ent. & Tech. 223

Abstract

Optional statutory royalty damages are provided for by both the version of the Uniform Trade Secrets Act that has been enacted by most of the forty seven adopting states and the federal patent code remedies for infringement of utility patents. Notwithstanding periodic recommendations that the Uniform Act follow the patent code concept of statutory royalty damages, this article takes the position that differences between the Uniform Act and the Patent Code regarding monetary remedies make it reasonable for the Uniform Act statutory royalty provisions to be construed more objectively than their federal counterpart. This will preclude statutory royalty damages acquiring the unwarranted significance under the Uniform Act that they have acquired under the Patent Code.