Protection of Trade Secrets

What laws protect rights in trade secrets?

State laws protect rights in trade secrets. The vast majority of states have enacted the Uniform Trade Secrets Act (UTSA) or a similar law that protects the owner's right in a trade secret. A few states apply the common law governing trade secrets to protect trade secrets.

SIDEBAR: Trade secrets may also be protected under a state statute or the common law governing unfair competition or unfair business practices.

What does the UTSA or similar statutes protect?

They protect trade secrets as defined in the statute against misappropriation, which is acquiring a trade secret through improper means such as theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy or espionage through electronic or other means.

TIP: Consult the statutes in your state to determine specifically what acts are prohibited.

Are there any other means of protecting trade secrets?

While the various state laws protecting trade secrets are available, the best way to protect trade secrets from unauthorized use or disclosure is by confidentiality or nondisclosure agreements.