At the time, the UTSA did not have any provision allowing for the recovery of damages measured as a reasonable royalty. As explained in Ajax, Inc. v. E*Trade Financial Corp., 187 Cal. App. 4th 1295 (2010), the California legislature filled the void by adding language intended to codify the common law principle that the reasonable royalty measure of damages was “only appropriate where the defendant has made no actual profits and the plaintiff is unable to prove a specific loss.” Id.

California, however, has recently allowed this remedy regardless of whether actual damages are unprovable as a matter of fact or law. See Ajaxo, Inc. v. E*Trade Financial Corp., 187 Cal. App. 4th 1295 (2010).Thus, trade secret holders should consider requesting reasonable royalties as an alternative to a permanent injunction when appropriate.