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Trade Secret Damages for Mining Equipment

Background

A manufacturer of mining and industrial mineral processing equipment sued a manufacturer of related replacement parts for trade secret misappropriation. The technology at issue related to conical crushers, which are heavy equipment used to reduce rocks to a size that is acceptable for a specific application.


Our Analysis

Intensity calculated economic damages relating to claims of trade secret misappropriation. Intensity also evaluated reverse engineering effects, capacity constraints, and related market conditions that may have impacted trade secret damages in the case.

As part of determining trade secret damages, Intensity evaluated whether the trade secret technology provided a “head start” in the development and commercialization of accused conical crushers. Intensity evaluated economic considerations under various development scenarios and calculated trade secret damages under five different scenarios relating to lost profits on lost sales of crushers and replacement parts. Intensity also evaluated applicable royalties.