Virginia Supreme Court Issues Important Trade Secret Decision and Raises Bar for Proving Damages

In its latest opinion dealing with trade secret issues, the Virginia Supreme Court ruled that the Virginia Uniform Trade Secrets Act, Va. Code §§ 59.1-336 through 343 ("VUTSA") protects trade secrets even if they are used by an entity that is not demonstrably "in competition with" the plaintiff. Collelo v. Geographic Services, Inc., No. 101411, 101421. The Court also apparently concluded that a plaintiff must demonstrate different damages flowing from a violation of the VUTSA, on the one hand, and claims for breaches of contract and tortious interference of contract, on the other hand. Further, the trial court’s original ruling and the Collelo dissent suggest that hostility to trade secret protection for employers in Virginia is not waning.

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