The underlying dispute stems from a software licensing relationship dating to the late 1990s, when Ford hired Versata to develop vehicle-configuration software and later licensed it for years. A jury in 2022 found Ford liable for misappropriating multiple trade secrets and breaching the parties' agreement, awarding $22.4 million for trade-secret misappropriation and $82 million for breach of contract. The district court subsequently cut the trade-secret award to zero and reduced the contract award to $3, concluding Versata had failed to prove recoverable damages under the applicable legal theories.
The Federal Circuit's May 22, 2026 precedential decision resolves a significant damages question in trade-secret litigation: whether plaintiffs can recover unjust enrichment even where a prior licensing relationship exists between the parties. The court also rejected Ford's argument for a heightened knowledge requirement in cases involving combination trade secrets. Attorneys handling trade-secret disputes should monitor how this ruling reshapes damages calculations and the interplay between licensing agreements and misappropriation claims.