Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                          CHAPTER 1-H.F.No. 45 
           An act relating to commerce; revising the Uniform 
          Trade Secret Act; clarifying remedies; amending 
          Minnesota Statutes 1986, sections 325C.02; 325C.03; 
          and 325C.07. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 325C.02, is 
amended to read:  
    325C.02 [INJUNCTIVE RELIEF.] 
    (a) Actual or threatened misappropriation may be enjoined.  
Upon application to the court, an injunction shall be terminated 
when the trade secret has ceased to exist, but the injunction 
may be continued for an additional reasonable period of time in 
order to eliminate commercial advantage that otherwise would be 
derived from the misappropriation.  
    (b) If the court determines that it would be unreasonable 
to prohibit future use In exceptional circumstances, an 
injunction may condition future use upon payment of (1) an 
equitable a reasonable royalty for no longer than the period of 
time the for which use could have been prohibited; or (2) other 
compensation.  Exceptional circumstances include, but are not 
limited to, a material and prejudicial change of position prior 
to acquiring knowledge or reason to know of misappropriation 
that renders a prohibitive injunction inequitable.  
    (c) In appropriate circumstances, affirmative acts to 
protect a trade secret may be compelled by court order.  
    Sec. 2.  Minnesota Statutes 1986, section 325C.03, is 
amended to read:  
    325C.03 [DAMAGES.] 
    (a) In addition to or in lieu of injunctive relief, a 
complainant may recover damages for the actual loss caused by 
misappropriation.  A complainant also may recover for the unjust 
enrichment caused by misappropriation that is not taken into 
account in computing damages for actual loss Except to the 
extent that a material and prejudicial change of position prior 
to acquiring knowledge or reason to know of misappropriation 
renders a monetary recovery 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.  In lieu of damages 
measured by any other methods, the damages caused by 
misappropriation may be measured 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 exemplary damages in an amount which the court 
deems just and equitable not exceeding twice any award made 
under paragraph (a). 
    Sec. 3.  Minnesota Statutes 1986, section 325C.07, is 
amended to read:  
    325C.07 [EFFECT ON OTHER LAW.] 
    (a) Except as provided in paragraph (b), sections 325C.01 
to 325C.07 displace conflicting tort, restitutionary, and other 
law of this state pertaining to providing civil 
liability remedies for misappropriation of a trade secret.  
    (b) Sections 325C.01 to 325C.07 do not affect:  
    (1) contractual or other civil liability remedies, whether 
or relief that is not based upon misappropriation of a trade 
secret; or 
    (2) criminal liability for other civil remedies that are 
not based upon misappropriation of a trade secret; or 
    (3) criminal remedies, whether or not based upon 
misappropriation of a trade secret. 
    Approved February 20, 1987