Trade Secrets Law in California

Note: This page covers information specific to California. See the Trade Secrets overview for more general information.

The California Uniform Trade Secrets Act ("CUTSA") is located at sections 3426 to 3246.11 of the California Civil Code. CUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, CUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, California law may impose criminal penalties for stealing trade secrets. See Cal. Penal Code §§ 499c, 502.

Definitions

Cal. Civ. Code 3426.1 defines the key terms of CUTSA:

(a) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. Reverse engineering or independent derivation alone shall not be considered improper means.

(b) "Misappropriation" means:

(1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(2) Disclosure or use of a trade secret of another without express or implied consent by a person who:

(A) Used improper means to acquire knowledge of the trade secret; or

(B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was:

(i) Derived from or through a person who had utilized improper means to acquire it;

(ii) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(C) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(d) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and

(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: CUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. Cal. Civ. Code § 3426.2 (scroll down). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. Cal. Civ. Code § 3246.3 (scroll down).

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. Cal Civ. Code § 3246.4 (scroll down).

Statute of Limitations

The statute of limitations for a trade secret claim in California is three years. Cal. Civ. Code § 3426.6 (scroll down).

 

Trade Secrets Law in Florida

Note: This page covers information specific to Florida. See the Trade Secrets overview for more general information.

The Florida Uniform Trade Secrets Act ("FUTSA") is located in chapter 688 of title XXXIX of the 2007 Florida Statutes. FUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, FUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Florida law may impose criminal penalties for stealing trade secrets. See Fla. Stat. § 812.081.

Definitions

Fla. Stat. § 688.002 defines the key terms of FUTSA:

(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

(2) "Misappropriation" means:

(a) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(b) Disclosure or use of a trade secret of another without express or implied consent by a person who:

1. Used improper means to acquire knowledge of the trade secret; or

2. At the time of disclosure or use, knew or had reason to know that her or his knowledge of the trade secret was:

a. Derived from or through a person who had utilized improper means to acquire it;

b. Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

c. Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

3. Before a material change of her or his position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process that:

(a) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: FUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Fla. Stat. § 688.003. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See Fla. Stat. § 688.004.

• Attorney's Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See Fla. Stat. § 688.005.

Statute of Limitations

The statute of limitations for a trade secret claim in Florida is three years. See Fla. Stat. § 688.007.

Trade Secrets Law in Georgia

Note: This page covers information specific to Georgia. See the Trade Secrets overview for more general information.

The Georgia Trade Secrets Act of 1990 ("GUTSA") is located at title 10, chapter 1, article 27 of the Georgia Code. GUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, GUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Florida law may impose criminal penalties for stealing trade secrets. See [Ga. Code § 16-8-13] (link is to entire code; you need to click through to title 16, chapter, 8, article 1, and then choose the specific provision).

Definitions

Ga. Code § 10-1-761 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision) defines the key terms of GUTSA:

(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a confidential relationship or other duty to maintain secrecy or limit use, or espionage through electronic or other means. Reverse engineering of a trade secret not acquired by misappropriation or independent development shall not be considered improper means.

(2) "Misappropriation" means:

(A) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(B) Disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) Used improper means to acquire knowledge of a trade secret;

(ii) At the time of disclosure or use, knew or had reason to know that knowledge of the trade secret was:

(I) Derived from or through a person who had utilized improper means to acquire it;

(II) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(III) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) Before a material change of position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other for profit or not for profit legal or commercial entity.

(4) "Trade secret" means information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information:

(A) Derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(B) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: GUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Ga. Code § 10-1-762 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See Ga. Code § 10-1-763 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision).

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See Ga. Code § 10-1-764 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision).

Statute of Limitations

The statute of limitations for a trade secret claim in Georgia is five years. See Ga. Code § 10-1-766 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision).

Trade Secrets Law in Illinois

Note: This page covers information specific to Illinois. See the Trade Secrets overview for more general information.

The Illinois Trade Secrets Act ("ITSA") is located at chapter 765 of the Illinois Compiled Statutes. ITSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, ITSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

765 Ill. Comp. Stat. 1065/2 (scroll down) defines the key terms of ITSA:

(a) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a confidential relationship or other duty to maintain secrecy or limit use, or espionage through electronic or other means. Reverse engineering or independent development shall not be considered improper means.

(b) "Misappropriation" means:

(1) acquisition of a trade secret of a person by another person who knows or has reason to know that the trade secret was acquired by improper means; or

(2) disclosure or use of a trade secret of a person without express or implied consent by another person who:

(A) used improper means to acquire knowledge of the trade secret; or

(B) at the time of disclosure or use, knew or had reason to know that knowledge of the trade secret was:

(I) derived from or through a person who utilized improper means to acquire it;

(II) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(III) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(C) before a material change of position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other for‑profit or not‑for‑profit legal entity.

(d) "Trade secret" means information, including but not limited to, technical or non‑technical data, a formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, or list of actual or potential customers or suppliers, that:

(1) is sufficiently secret to derive economic value, actual or potential, from not being generally known to other persons who can obtain economic value from its disclosure or use; and

(2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy or confidentiality.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: ITSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See 765 Ill. Comp. Stat. 1065/3 (scroll down). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See 765 Ill. Comp. Stat. 1065/4 (scroll down).

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See 765 Ill. Comp. Stat. 1065/5 (scroll down).

Statute of Limitations

The statute of limitations for a trade secret claim in Illinois is five years. See 765 Ill. Comp. Stat. 1065/7 (scroll down).

Trade Secrets Law in Indiana

Note: This page covers information specific to Indiana. See the Trade Secrets overview for more general information.

The Indiana Uniform Trade Secrets Act ("IUTSA") is located at title 24, article 2, chapter 3 of the Indiana Code. IUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, IUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

Ind. Code § 24-2-3-2 (scroll down) defines the key terms of IUTSA:

"Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

"Misappropriation" means:

(1) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(2) disclosure or use of a trade secret of another without express or implied consent by a person who:

(A) used improper means to acquire knowledge of the trade secret;

(B) at the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was:

(i) derived from or through a person who had utilized improper means to acquire it;

(ii) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(iii) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(C) before a material change of his position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

"Person" means a natural person, limited liability company, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

"Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: IUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Ind. Code § 24-2-3-3 (scroll down). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See Ind. Code § 24-2-3-4 (scroll down).

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See Ind. Code § 24-2-3-5 (scroll down).

Statute of Limitations

The statute of limitations for a trade secret claim in Indiana is three years. Ind. Code § 24-2-3- (scroll down).

Trade Secrets Law in Massachusetts

Note: This page covers information specific to Massachusetts. See the Trade Secrets overview for more general information.

Massachusetts has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. Like the UTSA, however, Massachusetts law creates civil liability for acquisition of trade secrets through improper means. In addition, Massachusetts is one of the few states that imposes criminal liability for improper acquisition of trade secrets - unlawfully taking a trade secret is included in the definition of the crime of larceny and can result in imprisonment.

Definitions

Massachusetts law defines a trade secret as "anything tangible or intangible or electronically kept or stored, which constitutes, represents, evidences or records a secret scientific, technical, merchandising, production or management information, design, process, procedure, formula, invention or improvement." Mass. Gen. Laws. ch. 266, § 30. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.

Unlike the Uniform Trade Secret Act, Massachusetts law does not use the word "misappropriation." Instead, it lists a number of activities that trigger civil liability:

• embezzling a trade secret;
• stealing or unlawfully taking a trade secret;
• carrying away, concealing, or copying a trade secret; and
• obtaining a trade secret by fraud or deception;

Mass. Gen. Laws ch. 93, § 42. It is not clear whether Massachusetts law prohibits publishing a trade secret while knowing that it was acquired by a source through improper means. Undoubtedly, you could be liable for publishing a trade secret if you personally obtained it through any of the improper means listed above.

The Massachusetts criminal statute relating to trade secrets prohibits the following activities:

• stealing a trade secret;
• obtaining a trade secret through false pretenses with an intent to defraud someone; and
• converting, concealing, unlawfully taking, carrying away, or copying a trade secret with an intent to steal or embezzle.

Mass. Gen. Laws. ch. 266, § 30. It does not look like the law makes it a crime to publish a trade secret, so long as you do not personally obtain it through any of the improper means listed above.

Remedies

If a court finds that a defendant has unlawfully taken a plaintiff's trade secret(s), it may impose the following penalties and remedies:

• Criminal Penalties: Unlawfully taking a trade secret (defined above) constitutes the crime of larceny in Massachusetts and is punishable by up to five years imprisonment, or by a fine of up to $25,000 and up to two years imprisonment. See Mass. Gen. Laws ch. 266, § 30.

• Damages: A court can make a defendant pay money damages to the plaintiff in an amount up to twice its actual damages. See Mass. Gen. Laws ch. 93, § 42

• Injunctive Relief: Massachusetts law gives a court the power to restrain the defendant from "taking, receiving, concealing, assigning, transferring, leasing, pledging, copying or otherwise using or disposing of a trade secret, regardless of value." See Mass. Gen. Laws ch. 93, § 42A. It appears that a court could order you not to publish a trade secret if it found that you had unlawfully taken it from the plaintiff. The First Amendment to the U.S. Constitution may limit the court's authority to do so, however. For details, see Publishing Trade Secrets.

Statute of Limitations

The statute of limitations for a trade secret claim in Massachusetts is three years. See Mass. Gen. Laws ch. 260, § 2A .

Trade Secrets Law in Michigan

Note: This page covers information specific to Michigan. See the Trade Secrets overview for more general information.

The Michigan Uniform Trade Secrets Act ("MUTSA") is located in chapter 445 of the Michigan Compiled Laws. MUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, MUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

Mich. Comp. Laws § 445.1902 defines the key terms of MUTSA:

(a) “Improper means” includes theft, bribery, misrepresentation, breach, or inducement of a breach of a duty to maintain secrecy or espionage through electronic or any other means.

(b) “Misappropriation” means either of the following:

(i) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means.

(ii) Disclosure or use of a trade secret of another without express or implied consent by a person who did 1 or more of the following:

(A) Used improper means to acquire knowledge of the trade secret.

(B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was derived from or through a person who had utilized improper means to acquire it, acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use, or derived from or through a person who owed a duty to the person to maintain its secrecy or limit its use.

(C) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(c) “Person” means an individual, corporation, partnership, association, governmental entity, or any other legal entity.

(d) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that is both of the following:

(i) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

(ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunction: MUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Mich. Comp. Laws § 445.1903. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. In lieu of those damages, a court can also order a losing defendant to pay a royalty to the trade secret owner. See Mich. Comp. Laws § 445.1904.

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See Mich. Comp. Laws § 445.1905.

Statute of Limitations

The statute of limitations for a trade secret claim in Michigan is three years. See Mich. Comp. Laws § 445.1907.

Trade Secrets Law in New Jersey

Note: This page covers information specific to New Jersey. See the Trade Secrets overview for more general information.

New Jersey has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, New Jersey does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, New Jersey law creates civil liability for "misappropriation" of someone else's trade secret(s). New Jersey's criminal laws relating to theft may also impose criminal liability for stealing trade secrets.

Definitions

New Jersey courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.

The general meaning of "misappropriation" under New Jersey law is not entirely clear because many of the cases focus on situations where former employees passed secrets to a competitor, but it looks like misappropriation can happen in two ways, discussed in detail in the Basics of a Trade Secret Claim. First, you commit misappropriation if you personally acquire a trade secret by improper means. "Improper means" includes criminal acts, such as theft, fraud, breaking and entering, trespass, and bribing and swindling, as well as acts taken to overcome measures put in place to maintain secrecy of the trade secret information, such as fraud, interference with contractual obligations, and breach of a contract in obtaining or using the trade secret. Reverse engineering and independent development are not "improper means." Second, you commit misappropriation if you publish a trade secret while knowing that the person who gave you the information acquired it through improper means or under circumstances giving rise to a duty to maintain its secrecy or limit its use.

Remedies

If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following penalties and remedies:

• Injunctive Relief: A court may order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. Punitive damages and attorneys' fees may be available in exceptional circumstances.

Statute of Limitations

The statute of limitations for a trade secret claim in New Jersey is two years.

Trade Secrets Law in New York

Note: This page covers information specific to New York. See the Trade Secrets overview for more general information.

New York has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, New York does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, New York law creates civil liability for "misappropriation" of someone else's trade secret(s). New York's criminal larceny statute may also impose criminal liability for stealing trade secrets.

Definitions

New York courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim. New York courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts.

Under New York law, misappropriation consists of use or disclosure of a trade secret that was acquired through a relationship of trust (such as employment), or through fraud or other improper means, such as theft, bribery, or hacking. This definition appears to include publishing a trade secret while knowing that your source obtained it through improper means or in breach of a confidentiality agreement.

Remedies

If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following penalties and remedies:

• Injunctive Relief: A court may order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. Punitive damages are available in exceptional circumstances.

Statute of Limitations

The statute of limitations for a trade secret claim in New York is three years.

Trade Secrets Law in North Carolina

Note: This page covers information specific to North Carolina. See the Trade Secrets overview for more general information.

The North Carolina Trade Secrets Protection Act is located in chapter 66, article 24 of the North Carolina General Statutes. This Act is similar to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, The North Carolina Trade Secrets Protection Act prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

N.C. Gen. Stat. § 66-152 defines the key terms of the Act:

(1)"Misappropriation" means acquisition, disclosure, or use of a trade secret of another without express or implied authority or consent, unless such trade secret was arrived at by independent development, reverse engineering, or was obtained from another person with a right to disclose the trade secret.

(2)"Person" means an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or any other legal or commercial entity.

(3)"Trade secret" means business or technical information, including but not limited to a formula, pattern, program, device, compilation of information, method, technique, or process that:

a. Derives independent actual or potential commercial value from not being generally known or readily ascertainable through independent development or reverse engineering by persons who can obtain economic value from its disclosure or use; and

b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: The Act empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See N.C. Gen. Stat. § 66-154. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages. See N.C. Gen. Stat. § 66-154.

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. See N.C. Gen. Stat. § 66-154.

Statute of Limitations

The statute of limitations for a trade secret claim in North Carolina is three years. See N.C. Gen. Stat. § 66-157

 

Trade Secrets Law in Ohio

Note: This page covers information specific to Ohio. See the Trade Secrets overview for more general information.

The Ohio Uniform Trade Secrets Act ("OUTSA") is located at chapter 1333 of title 13 of the Ohio Revised Code. OUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, OUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

Ohio Rev. Code § 1333.61 defines the key terms of OUTSA:

(A) “Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

(B) “Misappropriation” means any of the following:

(1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means;

(2) Disclosure or use of a trade secret of another without the express or implied consent of the other person by a person who did any of the following:

(a) Used improper means to acquire knowledge of the trade secret;

(b) At the time of disclosure or use, knew or had reason to know that the knowledge of the trade secret that the person acquired was derived from or through a person who had utilized improper means to acquire it, was acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use, or was derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use;

(c) Before a material change of their position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(C) “Person” has the same meaning as in division (C) of section 1.59 of the Revised Code and includes governmental entities.

(D) “Trade secret” means information, including the whole or any portion or phase of any scientific or technical information, design, process, procedure, formula, pattern, compilation, program, device, method, technique, or improvement, or any business information or plans, financial information, or listing of names, addresses, or telephone numbers, that satisfies both of the following:

(1) It derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

(2) It is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: OUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Ohio Rev. Code § 1333.62. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to three times the plaintiff's actual damages. See Ohio Rev. Code § 1333.63.

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorney's fees if a motion to terminate an injunction is made or resisted in bad faith. See Ohio Rev. Code § 1333.64.

Statute of Limitations

The statute of limitations for a trade secret claim in Ohio is four years. See Ohio Rev. Code § 1333.66.

Trade Secrets Law in Pennsylvania

Note: This page covers information specific to Pennsylvania. See the Trade Secrets overview for more general information.

Enacted in 2004, the Pennsylvania Uniform Trade Secrets Act ("PUTSA") is located at chapter 53 of title 12 of the Pennsylvania Consolidated Statutes. PUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, PUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Pennsylvania law may impose criminal penalties for stealing trade secrets. See 18 Pa. Cons. Stat. § 3930 (link is to the entire code; you need to choose title 18, part II, article C, chapter 39, subchapter B, and then choose the specific provision).

Definitions

12 Pa. Cons. Stat. § 5302 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision) defines the key terms of PUTSA:

"Improper means." Includes, but is not limited to, theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy or espionage through electronic or other means.

"Misappropriation." Includes:

(1) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(2) disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) used improper means to acquire knowledge of the trade secret;

(ii) at the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was:

(A) derived from or through a person who had utilized improper means to acquire it;

(B) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(C) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) before a material change of his position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

"Person." A natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency or any other legal or commercial entity.

"Trade secret." Information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that:

(1) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: PUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See 12 Pa. Cons. Stat. Ann. § 5303 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See 12 Pa. Cons. Stat. Ann. § 5304 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision).

• Attorneys' Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See 12 Pa. Cons. Stat. Ann. § 5305 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision).

Statute of Limitations

The statute of limitations for a trade secret claim in Pennsylvania is three years. See 12 Pa. Cons. Stat. Ann. § 5307 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision).

Trade Secrets Law in Texas

Note: This page covers information specific to Texas. See the Trade Secrets overview for more general information.

Texas has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, Texas does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, Texas law creates civil liability for "misappropriation" of someone else's trade secret(s). In addition, Texas law may impose criminal penalties for stealing trade secrets. See Texas Penal Code § 31.05 (link is to the Penal Code; you need to choose chapter 31 and then the specific provision).

Definitions

Texas courts have largely adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.

Under Texas law, misappropriation consists of use or disclosure of a trade secret that was acquired through a relationship of trust (such as employment), or through fraud or other improper means, such as theft, bribery, or hacking. This definition appears to include publishing a trade secret while knowing that your source obtained it through improper means or in breach of a confidentiality agreement.

Remedies

If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: CUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages and attorneys' fees.

Statute of Limitations

The statute of limitations for a civil trade secret claim in Texas is three years. See Tex. Civ. Prac. & Rem. Code Ann. § 16.010 (link is to the Civil Practice and Remedies Code; you need to choose chapter 16 and then the specific provision).

Criminal Law

As stated above, Texas also makes it a crime to steal trade secrets. Theft of a trade secret is a felony of the third degree. Third degree felony convictions in Texas carry a punishment of two to ten years in prison and a fine up to $10,000. See Tex. Penal Code Ann. § 12.34 (link is to the Penal Code; you need to choose chapter 12 and then the specific provision).

Trade Secrets Law in the District of Columbia

Note: This page covers information specific to the District of Columbia. See the Trade Secrets overview for more general information.

The District of Columbia Uniform Trade Secrets Act ("DUTSA") is located in chapter 4 of title 36 of the District of Columbia Official Code. DUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, DUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

D.C. Code § 36-401 (link is to entire code; you need to click through to title 36, chapter 4, and then choose the specific provision) defines the key terms of the Act:

(1) "Improper means" means theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

(2) "Misappropriation" means:

(A) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(B) Disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) Used improper means to acquire knowledge of the trade secret; or

(ii) At the time of disclosure or use, knew or had reason to know that the trade secret was:

(I) Derived from or through a person who had utilized improper means to acquire it;

(II) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use;

(III) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) Before a material change in his or her position, knew or had reason to know that the information was a trade secret and knowledge of the trade secret had been acquired by accident or mistake.

(3) "Person" means a natural person, corporation, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(A) Derives actual or potential independent economic value, from not being generally known to, and not being readily ascertainable by, proper means by another who can obtain economic value from its disclosure or use; and

(B) Is the subject of reasonable efforts to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: DUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See D.C. Code § 36-402 (link is to entire code; you need to click through to title 36, chapter 4, and then choose the specific provision). Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's authority to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. In lieu of those damages, a court can also order a losing defendant to pay a royalty to the trade secret owner. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See D.C. Code § 36-403 (link is to entire code; you need to click through to title 36, chapter 4, and then choose the specific provision).

• Attorneys' Fees:- If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. The court may also award attorneys' fees if a motion to terminate an injunction is made or resisted in bad faith. See D.C. Code § 36-404 (link is to entire code; you need to click through to title 36, chapter 4, and then choose the specific provision).

Statute of Limitations

The statute of limitations for a trade secret claim in the District of Columbia is three years. See D.C. Code § 36-406 (link is to entire code; you need to click through to title 36, chapter 4, and then choose the specific provision).

Trade Secrets Law in Virginia

Note: This page covers information specific to Virginia. See the Trade Secrets overview for more general information.

The Virginia Uniform Trade Secrets Act ("VUTSA") is located at chapter 26 of title 59.1 of the Virginia Code. VUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, VUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

Va. Code § 59.1-336 defines the key terms of VUTSA:

Trade secret means information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that:

1. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and

2. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Misappropriation means:

1. Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

2. Disclosure or use of a trade secret of another without express or implied consent by a person who

a. Used improper means to acquire knowledge of the trade secret; or

b. At the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was

(1) Derived from or through a person who had utilized improper means to acquire it;

(2) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use;

(3) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(4) Acquired by accident or mistake.

Improper means includes theft, bribery, misrepresentation, breach of a duty or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: VUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Va. Code § 59.1-337. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff punitive damages in an amount up to twice its actual damages. See Va. Code § 59.1-338.

• Attorney's Fees: If a plaintiff sues and wins, the court may award attorneys' fees if it finds that the defendant acted willfully or maliciously. On the other hand, if the defendant wins, the court may award attorneys' fees if it finds that the plaintiff acted in bad faith when filing the lawsuit. See Va. Code § 59.1-338.1.

Statute of Limitations

The statute of limitations for a trade secret claim in Virginia is three years. See Va. Code § 59.340.

Trade Secrets Law in Washington

Note: This page covers information specific to Washington. See the Trade Secrets overview for more general information.

The Washington Uniform Trade Secrets Act ("WUTSA") is located at chapter 108 of title 19 of the Revised Code of Washington. WUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.

Like the Uniform Trade Secret Act, WUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.

Definitions

Wash. Rev. Code § 19.108.010 defines the key terms of WUTSA:

(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means;

(2) "Misappropriation" means:

(a) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(b) Disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) Used improper means to acquire knowledge of the trade secret; or

(ii) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was

(A) derived from or through a person who had utilized improper means to acquire it,

(B) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use, or

(C) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process that:

(a) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.

Remedies

If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:

• Injunctive Relief: WUTSA empowers a court to order a defendant to stop violating the plaintiff's rights and to take steps to preserve the secrecy of the plaintiff's information. See Wash. Rev. Code § 19.108.020. Most importantly, this means that a court has the authority, as far as the law of trade secrets goes, to order you to stop publishing someone's trade secrets if it finds that your publication amounts to misappropriation. The First Amendment to the U.S. Constitution may limit the court's ability to do so, however. For details, see Publishing Trade Secrets.

• Damages: A court can make a defendant pay money damages to the plaintiff for the economic harm suffered as a result of a trade secret violation. This may include the plaintiff's losses resulting from the misappropriation and the defendant's profits derived from it. If the court determines that the defendant acted willfully or maliciously, it may award the plaintiff