AIPLA Files Amicus Brief in Pegasystems Inc. v. Appian Corporation

Arlington, VA. April 24, 2025 –The American Intellectual Property Law Association (AIPLA) filed an amicus brief with the Supreme Court of Virginia in Pegasystems Inc. v. Appian Corporation, an appeal concerning issues of trade secret misappropriation damages under the Virginia Uniform Trade Secrets Act (VUTSA).

The brief is in support of neither party with respect to the overall outcome of the case, but addresses an important question of general application in trade secret litigation: the proper burden of proof regarding causation of damages. Specifically, AIPLA argues that a plaintiff must bear the initial burden of proving that any damages sought were proximately caused by the alleged misappropriation before any burden shifts to the defendant to rebut the plaintiff’s evidence or prove offsetting costs. The brief contends that the trial court erred by instructing the jury using an excerpt from the Restatement (Third) of Unfair Competition that failed to clarify the plaintiff’s obligation to prove causation in the first instance, risking jury confusion. The Court of Appeals reversed the district court’s decision in line with the arguments raised in the Amicus brief AIPLA filed in that court that raised the same issues.  Here, AIPLA urges the Court to confirm that in trade secret cases, any instruction on burdens regarding damages must explicitly state the plaintiff's burden to prove proximate causation.

Click to the right to read the full brief.