Cadence Design Systems v. Avant! Corporation

We granted the request for certification of the United States Court of Appeals for the Ninth Circuit pursuant to California Rules of Court, rule 29.5, to address the following question:

Under the California Uniform Trade Secrets Act (UTSA), Civil Code section 3426, when does a claim for trade secret infringement arise: only once, when the initial misappropriation occurs, or with each subsequent misuse of the trade secret?

We conclude that in a plaintiffs action against the same defendant, the continued improper use or disclosure of a trade secret after defendant’s initial misappropriation is viewed under the UTSA as part of a single claim of “continuing misappropriation” accruing at the time of the initial misappropriation.

I. Statement of Facts

The relevant facts, as stated in the Ninth Circuit’s certification order to this court, are as follows:

Cadence Design Systems, Inc., and Avant! Corporation compete in the field of integrated circuit design automation. Both companies design “place and route” software, which enables computer chip designers to place and connect tiny components on a computer chip. Cadence formed in 1988 through the merger of several companies.…