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## Overview On May 26, 2026, the U.S. Court of Appeals for the Federal Circuit issued a precedential decision in *Versata Software, LLC v. Ford Motor Co.*, reversing the Eastern District of Michigan's post-trial reduction of unjust enrichment damages to $0 in a trade secret misappropriation case (IPWatchdog, May 26). The Federal Circuit held that the district court erred in precluding unjust enrichment damages from jury consideration, and separately reinstated the full jury verdict on Versata's breach of contract claim. ## Key Holdings 1. **Unjust Enrichment Damages**: The CAFC held that the district court improperly precluded the jury from awarding unjust enrichment damages, reversing the JMOL reduction to $0. The decision clarifies that unjust enrichment is a cognizable measure of damages in trade secret cases and cannot be categorically excluded at the JMOL stage where evidence supports it (IPWatchdog, May 26). 2. **Breach of Contract Damages**: The court reinstated the full jury verdict on the contract claim, finding that the jury properly relied on a damages methodology grounded in the parties' licensing history (IPWatchdog, May 26). ## Significance for Trade Secret Litigation This is a precedential decision with direct implications for: - **Damages strategy**: Plaintiffs in trade secret cases should plead and develop unjust enrichment theories in parallel with lost profits or reasonable royalty claims. Courts cannot categorically eliminate this measure post-verdict. - **JMOL standards**: The decision reinforces limits on district court discretion to override jury verdicts on damages, particularly where evidence of defendant benefit exists. - **Licensing history as damages anchor**: The affirmance of contract damages based on licensing history provides a template for structuring damages expert testimony around comparable transactions. ## Context: Versata Software Versata Software has been an active IP litigant, previously involved in significant software patent disputes (including against SAP). The Ford matter involves trade secret claims arising from software provided to the automaker. ## Watchlist - Whether Ford seeks en banc rehearing or certiorari - District court proceedings on remand for unjust enrichment damages determination - Whether the decision influences trade secret damages awards in other circuits