The NJ Trade Secrets Act was signed into law in January 2012. The Act establishes principles governing the protection of trade secrets and remedies for their misappropriation. The statutory definition of a "trade secret," fundamentally, is information which is: (1) safeguarded, (2) valuable, and (3) not common knowledge.
The Act sets out several remedies for misappropriation of trade secrets. These include injunctive relief and payment of a royalty. These remedies are not mutually exclusive, but rather can both be awarded to the victim of the misappropriation. The Act also establishes punitive damages, but caps them at double the amount of any award given for damages, such as royalties. Punitive damages are awarded where the misappropriation is "willful and malicious." Finally, the Act provides for an award of reasonable attorneys' fees and costs to the prevailing party where the misappropriation was "willful and malicious."
We actively follow developments with respect to New York employment law and New Jersey employment law. We are available to assist employers, employees, newly formed businesses, and investors with protecting trade secrets and addressing any questions or employment law issues. For more information, please contact us.