New Jersey Trade Secrets Act Effective January 9, 2012

On January 9, 2012, Governor Chris Christie signed into law the New Jersey Trade Secrets Act, which became effective immediately. As detailed in the November 2011 issue of the New Jersey eAuthority, the Act provides remedies for the misappropriation of trade secrets, and is based on the Uniform Trade Secrets Act. This Act supersedes current common law remedies for misappropriation of trade secrets and allows for recovery based on both actual loss suffered by a plaintiff and unjust enrichment of the defendant caused by the misappropriation of trade secrets. It also provides for injunctive relief. Damages also may include a reasonable royalty for unauthorized disclosure or use of the trade secrets. In cases of willful misappropriation, punitive damages and attorneys’ fees may be awarded. In addition, if a claim for misappropriation is brought in bad faith, attorneys’ fees may be awarded to the defendant. With New Jersey’s passage of the Act, Massachusetts, New York, and Texas remain the lone states that have not yet adopted the Uniform Trade Secrets Act.