AIPLA Files Amicus Brief in The TriZetto Group, Inc. v. Syntel Sterling Best Shores Mauritius Limited

On October 18, 2023, the American Intellectual Property Law Association (AIPLA) filed an amicus brief in support of a petition for certiorari to the Supreme Court in The TriZetto Group, Inc. v. Syntel Sterling Best Shores Mauritius Limited (23-306) on the issue of whether unjust enrichment damages in a trade secret case should be considered independently of the victim’s own loss. The Defend Trade Secrets Act’s damage provision allows recovery for “actual loss … and … unjust enrichment … that is not addressed in computing damages for actual loss.” 18 U.S.C. § 1836(b)(3)(B) (emphasis added). The Second Circuit held that a plaintiff that has suffered no compensable harm beyond its own lost profits cannot recover the defendant’s avoided costs as a form of unjust enrichment. The brief argues that such a requirement is contrary to the plain language and legislative history of the DTSA, which sought to reinforce the policy that misappropriators should not be allowed to retain any advantage from their misconduct. The Second Circuit’s ruling, relying on a common-law restatement, conflicts with every circuit that has looked at this issue in connection with the virtually identical language in the UTSA. Lastly, the brief argues that any concerns about excessive damages should have been addressed by traditional review of the district court’s consideration of equitable relief.