How To Prove A California Misappropriation Claim

In California, a claim of Misappropriation is defined as:
Misappropriation relates to the unauthorized use of a person’s name, likeness, image, or other aspects of their identity for commercial purposes without their consent. This tort is often associated with cases of invasion of privacy and the protection of an individual’s right to control the use of their personal attributes for financial gain by others.
It simply means:
Using the symbol of another business without permission and confusing consumers about the source of the goods or services.
There are 3 elements of the claim:
- Element 1. The plaintiff made a substantial investment of time, effort and money into creating the thing misappropriated such that the court can characterize that `thing’ as a kind of property right. The plaintiff put a lot of time, effort, and money into creating something valuable, so the court sees that creation as a type of property that deserves protection from being unfairly taken or used by someone else without permission.
Facts that might support this element look like:
* The plaintiff dedicated over two years to developing the proprietary software, investing significant financial resources and labor into its creation.
* The plaintiff conducted extensive market research and user testing, which required substantial time and effort to refine the product before its launch.
* The plaintiff secured multiple patents related to the technology, demonstrating a commitment to protecting their intellectual property rights.
* The plaintiff’s investment included hiring specialized personnel and purchasing advanced equipment, further establishing the value of the misappropriated creation.
* The plaintiff documented all stages of development, including design drafts and financial records, evidencing the substantial effort and resources committed to the project. - Element 2. The defendant appropriated the `thing’ at little or no cost, such that the court can characterize defendant’s actions as `reaping where it has not sown’. The defendant took something valuable without paying much or anything for it, making it seem like they are unfairly benefiting from others’ efforts without contributing themselves, which is a key part of a misappropriation claim in court.
Facts that might support this element look like:
* The defendant obtained the proprietary information from the plaintiff without any compensation or agreement in place.
* The defendant utilized the plaintiff’s trade secrets to develop a competing product without investing any resources in research or development.
* The defendant accessed the plaintiff’s confidential data through unauthorized means, incurring no costs for its acquisition.
* The defendant profited significantly from the use of the plaintiff’s intellectual property while contributing nothing to its creation or development.
* The defendant’s actions resulted in substantial financial gain, all derived from the plaintiff’s original work without any investment or effort on the defendant’s part. - Element 3. the defendant injured the plaintiff by the misappropriation. The defendant caused harm to the plaintiff by wrongfully using or taking something that belonged to the plaintiff, leading to financial loss or damage.
Facts that might support this element look like:
* The defendant used the plaintiff’s proprietary information to develop a competing product without permission.
* The defendant accessed the plaintiff’s confidential business plans and shared them with a third party.
* The plaintiff had established a market for their unique service, which the defendant directly copied and marketed as their own.
* The defendant’s actions resulted in a significant loss of revenue for the plaintiff due to customer confusion.
* The plaintiff had taken reasonable steps to protect their trade secrets, which the defendant disregarded.
(See Lebas Fashion Imports of USA v. ITT Hartford Ins., 50 Cal. App. 4th 548 – Cal: Court of Appeal, 2nd Appellate Dist., 3rd Div. 1996.)
If you’re in court without a lawyer and plan to assert a Claim of Misappropriation, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge to effectively navigate your legal journey.
Prove Your CA Misappropriation Claim
U.S. Civil Cases Only