Federal Circuit Reinstates $82M Verdict in Versata v. Ford Trade Secret Case

In a May 22 precedential decision, the U.S. Court of Appeals for the Federal Circuit in Versata Software, LLC v. Ford Motor Co. reinstated an $82.26 million jury verdict for breach of contract that a district judge had reduced to $3. The court also vacated the judgment on trade secret misappropriation damages and remanded for a new trial, allowing Versata to pursue unjust enrichment remedies.

The underlying dispute involved Ford's alleged misappropriation of software trade secrets and breach of a licensing agreement. The Federal Circuit held that the jury's contract damages calculation was supported by reasonable certainty based on licensing history evidence and that the district court erred by precluding unjust enrichment damages models.

The ruling reverses a trend toward narrower damages awards in IP cases and potentially exposes Ford to significantly higher liability on remand.