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Clause survey / Trade secrets and confidentiality

Trade secrets and confidentiality

26 states, 26 rules, 225 authorities. Each state's card gives the rule, the trap that makes a clause drafted elsewhere fail there, and every authority with the sentences that state the rule. A state not listed is one we do not answer this family for.

25 of 26 read at the 2026-10-03 bar. A rule read at an earlier bar is not a rule that passes this one, and each card says which it is.

  1. read at the 2026-10-03 bar

    Does Alabama's Trade Secrets Act protect what our confidentiality clause covers?

    Only if the information meets all six statutory elements. As used in that chapter, unless the context clearly indicates otherwise, a trade secret is information that is used or intended for use in a trade or business; is included or embodied in a formula, pattern, compilation, computer software, drawing, device, method, technique, or process; is not publicly known and is not generally known in the trade or business of the person asserting that it is a trade secret; cannot be readily ascertained or derived from publicly available information; is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; and has significant economic value (Ala. Code § 8-27-2(1)). The chapter's provisions that are inconsistent with the common law of trade secrets supersede the common law, and otherwise the chapter is to be construed consistently with it (§ 8-27-6). Separately, the restraint-of-trade article treats as a protectable interest not only trade secrets as defined in § 8-27-2 but also confidential information that would not otherwise qualify as a trade secret, listing pricing information and methodology, compensation, customer lists, customer data, mailing lists, prospective customer information, financial and investment information, management and marketing plans, business strategy, technique and methodology, business models and data, processes and procedures, and company-provided files, software, code, reports, documents, manuals and forms treated as confidential to the business (§ 8-1-191(a)(2)). The same section stops short of the employee's own skills: job skills in and of themselves, without more, are not protectable interests (§ 8-1-191(b)).

    The trap

    Six elements, all required, and the two that decide most cases are reasonable secrecy efforts and the readily-ascertainable test. A confidentiality clause that sweeps in everything the employee saw does not turn it into a trade secret, and it may cut the other way: calling public or easily derived information confidential is evidence against the secrecy of what genuinely is secret. Note also that § 8-27-6 supersedes only the INCONSISTENT common law, so it is not a displacement provision of the kind found in Uniform Trade Secrets Act states; by its terms it speaks to the common law OF TRADE SECRETS and says nothing either way about a breach-of-contract claim, which is a separate question these materials do not settle.

    as of 2026-09-17

    4 authorities

    • statuteAla. Code § 8-27-2enactment date not established
      Show the words that state the rule
      As used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) TRADE SECRET. A “trade secret” is information that: a. Is used or intended for use in a trade or business; b. Is included or embodied in a formula, pattern, compilation, computer software, drawing, device, method, technique, or process; c. Is not publicly known and is not generally known in the trade or business of the person asserting that it is a trade secret; d. Cannot be readily ascertained or derived from publicly available information; e. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; and f. Has significant economic value.
    • statuteAla. Code § 8-27-6enactment date not established
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      Those provisions of this chapter that are inconsistent with the common law of trade secrets supersede the common law; otherwise, this chapter should be construed to be consistent with the common law of trade secrets.
    • statuteAla. Code § 8-1-191enactment date not established
      Show the words that state the rule
      (a) A protectable interest includes all of the following: (1) Trade secrets, as defined in Section 8-27-2. (2) Confidential information, including, but not limited to, pricing information and methodology; compensation; customer lists; customer data and information; mailing lists; prospective customer information; financial and investment information; management and marketing plans; business strategy, technique, and methodology; business models and data; processes and procedures; and company provided files, software, code, reports, documents, manuals, and forms used in the business that may not otherwise qualify as a trade secret but which are treated as confidential to the business entity, in whatever medium provided or preserved, such as in writing or stored electronically.
    • statuteAla. Code § 8-1-191enactment date not established
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      (b) Job skills in and of themselves, without more, are not protectable interests.
  2. read at the 2026-10-03 bar

    Does California's trade-secret act displace the confidentiality clause in this agreement?

    No. The Uniform Trade Secrets Act as enacted in California expressly does not affect (1) contractual remedies, whether or not based upon misappropriation of a trade secret, (2) other civil remedies that are not based upon misappropriation of a trade secret, or (3) criminal remedies; and, except as otherwise expressly provided, it does not supersede any statute relating to misappropriation of a trade secret or otherwise regulating trade secrets (Civ. Code § 3426.7(a)-(b)). What the Act does displace other law FOR is defined in it: "misappropriation" is acquisition by one who knows or has reason to know the secret was acquired by improper means, or disclosure or use without consent by one who used improper means, or knew the knowledge was derived through improper means, acquired under a duty of secrecy, or derived from a person who owed such a duty; "improper means" includes "breach or inducement of a breach of a duty to maintain secrecy", but "Reverse engineering or independent derivation alone shall not be considered improper means" (Civ. Code § 3426.1(a)-(b)). A complainant recovers actual loss and unjust enrichment, a reasonable royalty where neither is provable, and for willful and malicious misappropriation exemplary damages up to twice the award (§ 3426.3); fees and expert costs go to the prevailing party for a bad-faith claim or willful and malicious misappropriation (§ 3426.4). The action must be brought within three years of actual or constructive discovery, and a continuing misappropriation is a single claim (§ 3426.6). And before discovery on the trade secret begins, the claimant must identify it "with reasonable particularity" (Code Civ. Proc. § 2019.210).

    The trap

    The savings clause preserves CONTRACTUAL remedies whether or not based on misappropriation, and 'other civil remedies that are not based upon misappropriation'; by negative implication, a non-contract civil claim that IS based on misappropriation is not within subdivision (b)(2). How far that displaces companion tort claims is Court of Appeal law, and as that court states the test it is narrow: the Act preempts another civil remedy only if that remedy "hinges upon," is "predicated upon," "rests squarely on," or is "based entirely on" allegations that a trade secret was misappropriated, and it "does not displace noncontract claims that, although related to a trade secret misappropriation, are independent and based on facts distinct from the facts that support the misappropriation claim." Read that as the shape of the argument, not as authority to cite: the one decision we hold stating the test is not certified for publication, and California Rules of Court, rule 8.1115(a) forbids citing or relying on it, so the confidentiality covenant is still the claim this rule can speak for on its own. Whether an NDA drafted so broadly that it operates as a restraint on practising a trade is open to attack under Bus. & Prof. Code § 16600 is a live question, and the Court of Appeal has twice connected the two. Ajaxo Inc. v. E*Trade Group, Inc. (2005) 135 Cal. App. 4th 21 says, in a footnote, that a breach-of-contract cause of action may be available for disclosed information that does not qualify as a trade secret "if the information is protected under a confidentiality or nondisclosure agreement, provided the agreement is not an invalid restraint of trade", with § 16600 cited for the restraint point, so that court took it for granted that a confidentiality covenant CAN be an invalid restraint. Read it as the shape of the argument, not as the answer: it is a footnote aside in an appeal decided on other grounds, and it does not say which covenants cross the line. Rigging International Maintenance Co. v. Gwin (1982) 128 Cal. App. 3d 594 goes further on its face, recording that § 16600 precludes enforcing such an agreement "beyond the protection of confidential information", but the parties there AGREED on that point and the court resolved the appeal without deciding it, so it is a concession rather than a contested holding. What is still missing is a decision actually holding a confidentiality covenant void, or void in part, under § 16600. The drafting consequence of § 3426.1(a)'s last sentence is that a confidentiality covenant reaches conduct the Act does not: reverse engineering and independent derivation are not improper means under the Act, so a claim that a counterparty reverse-engineered a product is a CONTRACT claim if the agreement forbade it, and not a misappropriation claim at all.

    as of 2026-09-16

    11 authorities

    • statuteCal. Civ. Code § 3426.7enactment date not established
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      (a) Except as otherwise expressly provided, this title does not supersede any statute relating to misappropriation of a trade secret, or any statute otherwise regulating trade secrets. (b) This title does not affect (1) contractual remedies, whether or not based upon misappropriation of a trade secret, (2) other civil remedies that are not based upon misappropriation of a trade secret, or (3) criminal remedies, whether or not based upon misappropriation of a trade secret. (c) This title does not affect the disclosure of a record by a state or local agency under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). Any determination as to whether the disclosure of a record under the California Public Records Act constitutes a misappropriation of a trade secret and the rights and remedies with respect thereto shall be made pursuant to the law in effect before the operative date of this title.
    • statuteCal. Civ. Code § 3426.1enactment date not established
      Show the words that state the rule
      As used in this title, unless the context requires otherwise: (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.
    • statuteCal. Civ. Code § 3426.1enactment date not established
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      (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.
    • statuteCal. Civ. Code § 3426.3enactment date not established
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      (a) A complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss. (b) If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable royalty for no longer than the period of time the use could have been prohibited. (c) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subdivision (a) or (b).
    • statuteCal. Civ. Code § 3426.4enactment date not established
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      If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or willful and malicious misappropriation exists, the court may award reasonable attorney’s fees and costs to the prevailing party. Recoverable costs hereunder shall include a reasonable sum to cover the services of expert witnesses, who are not regular employees of any party, actually incurred and reasonably necessary in either, or both, preparation for trial or arbitration, or during trial or arbitration, of the case by the prevailing party.
    • statuteCal. Civ. Code § 3426.6enactment date not established
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      An action for misappropriation must be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statuteCal. Civ. Proc. Code § 2019.210enactment date not established
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      In any action alleging the misappropriation of a trade secret under the Uniform Trade Secrets Act (Title 5 (commencing with Section 3426) of Part 1 of Division 4 of the Civil Code), before commencing discovery relating to the trade secret, the party alleging the misappropriation shall identify the trade secret with reasonable particularity subject to any orders that may be appropriate under Section 3426.5 of the Civil Code.
    • statuteCal. Civ. Code § 3426.10enactment date not established
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      This title does not apply to misappropriation occurring prior to January 1, 1985. If a continuing misappropriation otherwise covered by this title began before January 1, 1985, this title does not apply to the part of the misappropriation occurring before that date. This title does apply to the part of the misappropriation occurring on or after that date unless the appropriation was not a misappropriation under the law in effect before the operative date of this title.
    • caseNo. B260301 (Cal. Ct. App. Jan. 7, 2016)O'Brien v. AMBS Diagnostics CA2/2Cal. Ct. App.decided 2016
      Show the words that state the rule
      The Act generally prohibits the misappropriation of trade secrets, but specifically preserves (1) “contractual remedies, whether or not based upon misappropriation of a trade secret,” (2) “other civil remedies that are not based upon misappropriation of a trade secret,” and (3) “criminal remedies, whether or not based upon misappropriation of a trade secret.” (Civ. Code, § 3426.7, italics added.) By negative implication, the italicized language has been read to “‘implicitly preempt[] alternative civil remedies based on trade secret misappropriation.’” (K.C. Multimedia, Inc. v. Bank of America Technology & Operations, Inc. (2009) 171 Cal.App.4th 939, 954 (K.C. Multimedia).) As to these alternative civil remedies, the Act “occupies the field” and “supersede[s] other causes of action even though [the Act] does not itself provide relief on a particular set of facts.” (Silvaco Data Systems v. Intel Corp. (2010) 184 Cal.App.4th 210, 234, 237 (Silvaco), overruled on other grounds in Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310.) Consistent with this mandate, the Act preempts another civil remedy only if that remedy “hinges upon,” is “predicated upon,” “rests squarely on,” or is “based entirely on” allegations that a trade secret was misappropriated. (K.C. Multimedia, at pp. 955, 959, 962; Silvaco, at p. 234.) The Act “does not displace noncontract claims that, although related to a trade secret misappropriation, are independent and based on facts distinct from the facts that support the misappropriation claim.”
    • case135 Cal. App. 4th 21Ajaxo Inc. v. E*Trade Group, Inc.Cal. Ct. App.decided 2005read it at the source ↗
      Show the words that state the rule
      In some cases, a breach of contract cause of action may be available where disclosed information does not qualify as a “trade secret” under the UTSA (Civ. Code, § 3426 et seq.) if the information is protected under a confidentiality or nondisclosure agreement, provided the agreement is not an invalid restraint of trade (see Bus. & Prof. Code, § 16600 [“every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void”]).
    • case128 Cal. App. 3d 594Rigging International Maintenance Co. v. GwinCal. Ct. App.decided 1982read it at the source ↗
      Show the words that state the rule
      Appellant contends that the “Employee Confidential Information and Invention Assignment Agreement” is enforceable against respondent. However, appellant agrees with respondent that Business and Professions Code section 16600 precludes enforceability of the agreement signed by respondent “beyond the protection of confidential information ....” Since we have determined that respondent did not make use of any confidential information of appellant that was entitled to protection, the agreement does not provide appellant with any additional basis upon which to attack the judgment of the trial court.
  3. read at the 2026-10-03 bar

    Does Connecticut's trade secrets act wipe out our NDA or confidentiality claims?

    Not the contract. Unless otherwise agreed by the parties, CUTSA supersedes conflicting tort, restitutionary or other law pertaining to civil liability for misappropriation of a trade secret, but it does not affect contractual or other civil liability or relief not based on misappropriation of a trade secret (§ 35-57). In Dur-A-Flex v. Dy (2024) the Connecticut Supreme Court held that CUTSA preempts noncontractual civil claims against a former employee based on the acquisition, disclosure or use of confidential information that does not rise to the level of a trade secret, so a noncontractual claim for misappropriation of commercial information by a former employee must be brought under CUTSA or not at all, while the court noted, in a footnote, that CUTSA does not preclude parties from protecting sensitive information contractually if it does not meet the statutory definition of a trade secret.

    The trap

    Without a contract, a former employee owes no Connecticut common-law duty to keep confidential commercial information that falls short of a trade secret: Dur-A-Flex rejected a two-tier system and concluded that its dictum in Allen Mfg. Co. v. Loika suggesting such a duty no longer reflects the law. The court limited that: CUTSA does not preclude parties from protecting such information by contract, 'Nor does it foreclose actions in which the misuse of confidential information may be implicated but is not the wrong actually being alleged' (the examples it gives are the Restatement (Third) of Unfair Competition's: a current employee's general duty of loyalty, and the duty of confidence in an attorney-client relationship). A trade secret is information that derives independent economic value from not being generally known or readily ascertainable and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (§ 35-51(d)).

    as of 2026-09-16

    10 authorities

    • statuteConn. Gen. Stat. § 35-57enactment date not established
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      Unless otherwise agreed by the parties, the provisions of this chapter supersede any conflicting tort, restitutionary, or other law of this state pertaining to civil liability for misappropriation of a trade secret. (b) This chapter does not affect: (1) Contractual or other civil liability or relief that is not based upon misappropriation of a trade secret; (2) criminal liability for misappropriation of a trade secret; or (3) the duty of any person or state or municipal agency to disclose information pursuant to section 1-210 , sections 31-40j to 31-40p , inclusive, or subsection (c) of section 12-62 , or wherever expressly provided by law.
    • statuteConn. Gen. Stat. § 35-51enactment date not established
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      (d) Notwithstanding the provisions of sections 1-210 , 31-40j to 31-40p , inclusive, and subsection (c) of section 12-62 , “trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, process, drawing, cost data or customer list 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.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      We conclude, therefore, that CUTSA preempts non- contractual civil claims against a former employee based on the acquisition, disclosure, or use of confiden- tial information that does not rise to the level of a trade secret. A noncontractual claim based on the misappro- priation of commercial information by a former employee must be brought under CUTSA or not at all.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
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      CUTSA, however, does not preclude parties from protecting sensitive infor- mation contractually if it does not meet the statutory definition of a trade secret.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      For the following reasons, we conclude that our dic- tum in Allen Mfg. Co. suggesting that a former employee has a common-law duty to maintain the confidentiality of information that does not constitute a trade secret no longer reflects the law.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      Nor does it foreclose actions in which the misuse of confidential information may be implicated but is not the wrong actually being alleged.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      For example, the Restatement (Third) of Unfair Competition acknowledges that it may be appropriate to impose liability for breach of confidence when interests other than protection of commercially valuable information are implicated—for example, the general duty of loyalty owed by a current employee to an employer or the duty of confidence in an attorney-client relationship.
    • statuteConn. Gen. Stat. § 35-51enactment date not established
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      As used in this chapter, unless the context requires otherwise: (a) “Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of duty to maintain secrecy, or espionage through electronic or other means, including searching through trash. (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 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, including but not limited to disclosures made under section 1-210 , sections 31-40j to 31-40p , inclusive, or subsection (c) of section 12-62 ; 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.
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      We conclude that the two tiered system of liability that the plaintiff envisions—claims under CUTSA for misap- propriation of trade secrets and common-law claims for misuse of other confidential information—is incon- sistent with the preemption clause in § 35-57 (a).
    • case349 Conn. 513Dur-A-Flex, Inc. v. DyConn.decided 2024read it at the source ↗
      Show the words that state the rule
      Accordingly, we conclude that the trial court correctly determined that CUTSA preempted the plaintiff’s claim that Samet had violated his common-law duty of confi- dentiality.
  4. read at the 2026-10-03 bar

    Does Delaware's trade secrets act wipe out the confidentiality clause's own remedies?

    No. The Delaware Uniform Trade Secrets Act displaces conflicting tort, restitutionary and other law of the State providing civil remedies for misappropriation of a trade secret, but it expressly does not affect contractual remedies, whether or not based upon misappropriation of a trade secret, other civil remedies not based upon misappropriation, or criminal remedies.

    The trap

    The contract is the part that survives, which inverts the usual instinct to plead the statute and treat the NDA as makeweight. Because § 2007(b)(1) preserves contractual remedies 'whether or not based upon misappropriation of a trade secret', a confidentiality clause covering information that would fail the statutory trade-secret definition still gives a claim. Do not draw the obvious inference about the tort side: § 2007(a) displaces only conflicting law providing civil remedies FOR MISAPPROPRIATION OF A TRADE SECRET, and § 2007(b)(2) expressly preserves other civil remedies NOT based upon misappropriation of a trade secret. So what is displaced is the parallel tort claim over information that IS a trade secret; a tort claim over information that is not one is preserved by the statute itself. Which side of that line a case falls on turns on the statutory definition in 6 Del. C. § 2001(4), which has to be applied to the information in question. The chapter's own remedies also carry limits a contract need not: fees under 6 Del. C. § 2004 require bad faith or wilful and malicious misappropriation, and § 2006 sets a 3-year limitation running from discovery.

    as of 2026-09-16

    4 authorities

    • statute6 Del. C. § 2007enactment date not established
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      (a) Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary and other law of this State providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret;
    • statute6 Del. C. § 2004enactment date not established
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      If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or wilful and malicious misappropriation exists, the court may award reasonable attorney’s fees to the prevailing party.
    • statute6 Del. C. § 2006enactment date not established
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      An action for misappropriation must be brought within 3 years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statute6 Del. C. § 2007enactment date not established
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      (b) This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret; (2) Other civil remedies that are not based upon misappropriation of a trade secret; or (3) Criminal remedies, whether or not based upon misappropriation of a trade secret.
  5. read at the 2026-10-03 bar

    Does Florida's trade secret statute wipe out our confidentiality clause, or does the NDA still do work?

    The NDA still does work. Fla. Stat. § 688.008(1) provides that the Florida Uniform Trade Secrets Act (§§ 688.001-688.009) displaces conflicting tort, restitutory and other law of this state providing civil remedies for misappropriation of a trade secret, but § 688.008(2) expressly preserves contractual remedies, whether or not based upon misappropriation of a trade secret, other civil remedies not based on misappropriation, and criminal remedies.

    The trap

    The displacement provision reaches tort, restitutory and other civil-remedy law 'for misappropriation of a trade secret' (the theories a plaintiff typically pleads alongside the contract claim), while § 688.008(2)(a) leaves contractual remedies untouched. How far the displacement reaches is therefore the reach of two defined terms, not one: 'misappropriation' in § 688.002(2) is built on 'improper means', which § 688.002(1) defines as including theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. Drafting consequence: define the protected material in the contract without leaning on the statutory definition in § 688.002(4) (information that derives independent economic value from not being generally known and not being readily ascertainable by proper means, AND is the subject of efforts reasonable under the circumstances to maintain its secrecy), so the contract claim does not depend on proving statutory trade-secret status. That matters because whether something is a trade secret is litigated as a question of fact, which means a misappropriation case can survive summary judgment and still take a trial to decide. On how far the displacement reaches particular non-contract counts, no Florida Supreme Court decision was found at all. The authorities checked do include a Third District Court of Appeal decision holding a common-law misappropriation-of-an-idea count preempted by the Act while the statutory trade-secret count went back for trial, so the displacement does real work on non-contract theories at the district level.

    as of 2026-09-16

    6 authorities

    • statuteFla. Stat. § 688.008enactment date not established
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      (1) Except as provided in subsection (2), ss. 688.001-688.009 displace conflicting tort, restitutory, and other law of this state providing civil remedies for misappropriation of a trade secret.
    • statuteFla. Stat. § 688.008enactment date not established
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      (2) This act does not affect:(a) Contractual remedies, whether or not based upon misappropriation of a trade secret; (b) Other civil remedies that are not based upon misappropriation of a trade secret; or (c) Criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteFla. Stat. § 688.002enactment date not established
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      (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.
    • statuteFla. Stat. § 688.002enactment date not established
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      (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.
    • caseNo. 3D18-1651Digiport, Inc. v. Foram Development BFC, LLCFla. 3d DCAdecided 2020-12-16
      Show the words that state the rule
      Digiport, Inc. and Data Centers Worldwide, Inc. (collectively, “Digiport”) appeal from a final summary judgment in favor of Foram Development BFC, LLC and its nine affiliated entities 1 (collectively, “Foram Group”), in this lawsuit for misappropriation of a trade secret under the Florida Uniform Trade Secret Act (“FUTSA”), misappropriation of an idea, and violation of Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”). Although Digiport’s common law claim is preempted by FUTSA, 2 whether Digiport’s business concept constitutes a trade secret is a question of fact. See Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc., 45 Fla. L. Weekly D2275, D2275 (Fla. 3d DCA Oct. 7, 2020). Thus, we affirm in part and reverse in part.
    • statuteFla. Stat. § 688.002enactment date not established
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      688.002 Definitions.—As used in ss. 688.001-688.009, unless the context requires otherwise: (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.
  6. read at the 2026-10-03 bar

    Does the Idaho Trade Secrets Act displace our confidentiality/NDA clause, or does a trade-secret claim exist alongside a contract claim?

    The Idaho Trade Secrets Act displaces overlapping TORT and restitution claims for trade-secret misappropriation, but expressly leaves CONTRACT remedies untouched. Idaho Code § 48-801(5) defines the protected subject matter: a trade secret is "information, including a formula, pattern, compilation, program, computer 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." The same subsection adds that trade secrets so defined "are subject to disclosure by a public agency according to chapter 1, title 74, Idaho Code", which matters when the counterparty is a public body. A confidentiality clause also does double duty under the Act: § 48-801(1) counts "breach or inducement of a breach of a duty to maintain secrecy" among the "[i]mproper means" by which a trade secret can be misappropriated. Basic American, Inc. v. Shatila confirms the operative burden: "In order to prevail in a misappropriation action under the ITSA, the plaintiff must show that a trade secret actually existed." The displacement/preservation split is Idaho Code § 48-806: "Except as provided in subsection (2) of this section, this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil liability remedies for misappropriation of a trade secret," but "[t]his chapter does not affect: (a) Contractual remedies, whether or not based upon misappropriation of a trade secret."

    The trap

    § 48-806's contract-remedies carve-out means a confidentiality or non-disclosure clause survives the ITSA's displacement of overlapping tort law even where the underlying information also happens to be a trade secret: the drafter does not lose a breach-of-contract theory just because the same facts could also support (or fail to support) an ITSA misappropriation claim; Basic American itself notes the trial court's decision "was based almost entirely on the misappropriation theory" even though the complaint also pleaded breach of contract, and that framing is a warning as much as a comfort, because the Court went on to say the issue on appeal "is not whether Shatila and IFP breached a contractual duty of confidentiality to Basic, but whether the conduct of appellants amounted to misappropriation of a trade secret under the ITSA", and decided the case on the statute, holding the defendants "liable for misappropriation of Basic's Trade Secret." Do not assume the ITSA's displacement reaches confidentiality obligations over information that is NOT a trade secret under § 48-801(5)'s two-part test: unlike some other states' trade secrets acts, this rule found no Idaho statute expressly saving an UNLIMITED-DURATION confidentiality covenant tied to trade secrets from a reasonableness or durational challenge (contrast Montana's § 8(b)(1)-style saving clause); that specific durational-savings question was searched for and not found answered by any statute read here. Damages under the ITSA are themselves capped in a distinctive way: § 48-803(2) allows exemplary damages "in an amount not exceeding twice any award" of actual-loss/unjust-enrichment/reasonable-royalty damages under subsection (1): a 2x cap, not an open-ended punitive remedy. Subsection (1) is itself conditional: entitlement to damages holds "[e]xcept to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable", which can remove the base and with it the multiplier. And the displacement carve-out has two more branches than the contractual one: § 48-806(2) also leaves untouched "[o]ther civil remedies that are not based upon misappropriation of a trade secret" and criminal remedies. No Idaho appellate decision mentions § 48-806, so the displacement line is drawn from its text alone.

    as of 2026-09-21

    9 authorities

    • statuteIdaho Code § 48-801enactment date not established
      Show the words that state the rule
      (1) "Improper means" include theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
    • statuteIdaho Code § 48-801enactment date not established
      Show the words that state the rule
      "Trade secret" means information, including a formula, pattern, compilation, program, computer 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. Trade secrets as defined in this subsection are subject to disclosure by a public agency according to chapter 1, title 74, Idaho Code.
    • statuteIdaho Code § 48-806enactment date not established
      Show the words that state the rule
      Except as provided in subsection (2) of this section, this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil liability remedies for misappropriation of a trade secret.
    • statuteIdaho Code § 48-806enactment date not established
      Show the words that state the rule
      This chapter does not affect: (a) Contractual remedies, whether or not based upon misappropriation of a trade secret; or (b) Other civil remedies that are not based upon misappropriation of a trade secret; or (c) Criminal remedies, whether or not based upon misappropriation of a trade secret.
    • case992 P.2d 175Basic American, Inc. v. ShatilaIdahodecided 1999read it at the source ↗
      Show the words that state the rule
      In order to prevail in a misappropriation action under the ITSA, the plaintiff must show that a trade secret actually existed.
    • statuteIdaho Code § 48-803enactment date not established
      Show the words that state the rule
      (1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator’s unauthorized disclosure or use of a trade secret.
    • statuteIdaho Code § 48-803enactment date not established
      Show the words that state the rule
      If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (1) of this section.
    • case992 P.2d 175Basic American, Inc. v. ShatilaIdahodecided 1999read it at the source ↗
      Show the words that state the rule
      While Basic’s complaint included claims for both breach of contract and misappropriation of trade secrets under the ITSA, the trial court’s decision was based almost entirely on the misappropriation theory. 3 The issue on appeal is not whether Shatila and IFP breached a contractual duty of confidentiality to Basic, but whether the conduct of appellants amounted to misappropriation of a trade secret under the ITSA.
    • case992 P.2d 175Basic American, Inc. v. ShatilaIdahodecided 1999read it at the source ↗
      Show the words that state the rule
      We find that when the facts as found by the trial court are applied to the correct tests under the ITSA, IFP and Shatila are liable for misappropriation of Basic’s Trade Secret.
  7. read at the 2026-10-03 bar

    Is our NDA with no time limit enforceable in Illinois, and does the trade-secrets act swallow our common-law claims?

    Except as provided in subsection (b), the Illinois Trade Secrets Act 'is intended to displace conflicting tort, restitutionary, unfair competition, and other laws of this State providing civil remedies for misappropriation of a trade secret', but it does not affect contractual remedies, whether or not based upon misappropriation, and expressly provides that a contractual or other duty to maintain secrecy or limit use of a trade secret shall not be deemed void or unenforceable solely for lack of durational or geographical limitation on the duty (765 ILCS 1065/8(a), (b)(1)). Three more things the Act leaves alone: other civil remedies not based upon misappropriation of a trade secret, criminal remedies, and the definition of a trade secret in any other Illinois Act (§ 8(b)(2)-(4)).

    The trap

    This is why the two clauses must be drafted separately. An unlimited-duration covenant survives § 8(b)(1) only AS TO A TRADE SECRET: the proviso reads 'a contractual or other duty to maintain secrecy or limit use of a trade secret', so the Act says nothing about the duration of a covenant protecting other confidential information. Which makes the Act's own definition the first thing to check, and it is a two-part test, not a label: a trade secret is information: "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" among other things. That 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 "is the subject of efforts that are reasonable under the circumstances to maintain its secrecy or confidentiality" (765 ILCS 1065/2(d)). Fail the second limb and there is nothing for § 8(b)(1) to save. The Freedom to Work Act's definition of 'covenant not to compete' expressly EXCLUDES confidentiality covenants and trade-secret and invention-assignment agreements, so an NDA is not subject to that Act's earnings floor (820 ILCS 90/10(a): no employer shall enter into such a covenant unless actual or expected annualized earnings exceed $75,000 per year (an amount the section itself raises to $80,000 beginning January 1, 2027, $85,000 in 2032 and $90,000 in 2037), and a covenant entered into in violation of that subsection is void and unenforceable) or its 14-day review requirement (820 ILCS 90/20: illegal and void unless the employer advises consulting an attorney and gives 14 calendar days to review). The displacement half is the other trap: a common-law claim for misuse of confidential information that is really a trade-secret claim is displaced, while the contract claim on the same facts is not. What makes a claim a trade-secret claim is the Act's defined "misappropriation": acquisition by a person who knows or has reason to know the secret was acquired by improper means, or disclosure or use without consent by a person who used improper means, or who knew or had reason to know the knowledge was derived through someone who used improper means or owed a duty of secrecy, or who learned before a material change of position that it was a trade secret acquired by accident or mistake (765 ILCS 1065/2(b)).

    as of 2026-09-17

    7 authorities

    • statute765 ILCS 1065/8enactment date not established
      Show the words that state the rule
      (a) Except as provided in subsection (b), this Act is intended to displace conflicting tort, restitutionary, unfair competition, and other laws of this State providing civil remedies for misappropriation of a trade secret. (b) This Act does not affect: (1) contractual remedies, whether or not based upon misappropriation of a trade secret, provided however, that a contractual or other duty to maintain secrecy or limit use of a trade secret shall not be deemed to be void or unenforceable solely for lack of durational or geographical limitation on the duty;
    • statute765 ILCS 1065/8enactment date not established
      Show the words that state the rule
      (2) other civil remedies that are not based upon misappropriation of a trade secret; (3) criminal remedies, whether or not based upon misappropriation of a trade secret; or (4) the definition of a trade secret contained in any other Act of this State.
    • statute820 ILCS 90/5enactment date not established
      Show the words that state the rule
      "Covenant not to compete" does not include (1) a covenant not to solicit, (2) a confidentiality agreement or covenant, (3) a covenant or agreement prohibiting use or disclosure of trade secrets or inventions, (4) invention assignment agreements or covenants, (5) a covenant or agreement entered into by a person purchasing or selling the goodwill of a business or otherwise acquiring or disposing of an ownership interest, (6) clauses or an agreement between an employer and an employee requiring advance notice of termination of employment, during which notice period the employee remains employed by the employer and receives compensation, or (7) agreements by which the employee agrees not to reapply for employment to the same employer after termination of the employee.
    • statute820 ILCS 90/10enactment date not established
      Show the words that state the rule
      (a) No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year. This amount shall increase to $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037. A covenant not to compete entered into in violation of this subsection is void and unenforceable.
    • statute820 ILCS 90/20enactment date not established
      Show the words that state the rule
      A covenant not to compete or a covenant not to solicit is illegal and void unless (1) the employer advises the employee in writing to consult with an attorney before entering into the covenant and (2) the employer provides the employee with a copy of the covenant at least 14 calendar days before the commencement of the employee's employment or the employer provides the employee with at least 14 calendar days to review the covenant.
    • statute765 ILCS 1065/2enactment date not established
      Show the words that state the rule
      (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.
    • statute765 ILCS 1065/2enactment date not established
      Show the words that state the rule
      (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.
  8. read at the 2026-10-03 bar

    Will our Iowa confidentiality clause protect this information as a trade secret?

    Only if the information meets chapter 550's definition. A trade secret is information, including a formula, pattern, compilation, program, device, method, technique or process, that both derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by a person able to obtain economic value from its disclosure or use, and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (Iowa Code § 550.2(4)). Misappropriation includes disclosure or use of a trade secret by a person who at the time of disclosure or use knows that the trade secret is acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use (§ 550.2(3)(d)), the branch a confidentiality agreement supplies. The definition has six branches, and the one after it reaches a step further down the chain: disclosure or use by a person who at the time of disclosure or use knows that the trade secret is derived from or through a person who owes a duty to maintain its secrecy or limit its use (§ 550.2(3)(e)). The other branches turn on improper means, which § 550.2(1) defines as theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage. Every branch turns on knowledge, and the chapter does not confine that to what the defendant actually knew: a person knows a thing where "a person has actual knowledge of information or a circumstance or that the person has reason to know of the information or circumstance" (§ 550.2(2)). An action for misappropriation under the chapter must be brought within three years after the misappropriation is discovered or should have been discovered by the exercise of reasonable diligence, and a continuing misappropriation constitutes a single claim (§ 550.8).

    The trap

    Reasonable efforts to maintain secrecy are part of the definition, so the confidentiality clause is evidence for the statutory claim as well as a contract term; information the business does not in fact guard is not a trade secret whatever the agreement calls it. Two things this rule does NOT say. Iowa's chapter 550 as published runs from § 550.1 to § 550.8 and contains no provision displacing other civil remedies for misappropriation, so whether an Iowa contract claim on the confidentiality clause stands alongside a chapter 550 claim is a question the chapter does not answer and this rule does not answer either. And the three-year period in § 550.8 governs a statutory misappropriation action; on its words it does not set the period for a breach-of-contract claim on the clause.

    as of 2026-09-19

    5 authorities

    • statuteIowa Code § 550.2enactment date not established
      Show the words that state the rule
      “Trade secret” means information, including but not limited to a formula, pattern, compilation, program, device, method, technique, or process that is both of the following: a. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by a person able to obtain economic value from its disclosure or use. b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteIowa Code § 550.2enactment date not established
      Show the words that state the rule
      “Misappropriation” means doing any of the following: a. Acquisition of a trade secret by a person who knows that the trade secret is acquired by improper means. b. Disclosure or use of a trade secret by a person who uses improper means to acquire the trade secret. c. Disclosure or use of a trade secret by a person who at the time of disclosure or use, knows that the trade secret is derived from or through a person who had utilized improper means to acquire the trade secret. d. Disclosure or use of a trade secret by a person who at the time of disclosure or use knows that the trade secret is acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use. e. Disclosure or use of a trade secret by a person who at the time of disclosure or use knows that the trade secret is derived from or through a person who owes a duty to maintain the trade secret’s secrecy or limit its use. f. Disclosure or use of a trade secret by a person who, before a material change in the person’s position, knows that the information is a trade secret and that the trade secret has been acquired by accident or mistake.
    • statuteIowa Code § 550.2enactment date not established
      Show the words that state the rule
      “Improper means” means theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage, including but not limited to espionage through an electronic device.
    • statuteIowa Code § 550.8enactment date not established
      Show the words that state the rule
      An action for misappropriation under this chapter must be brought within three years after the misappropriation is discovered or should have been discovered by the exercise of reasonable diligence. For purposes of this section, a continuing misappropriation constitutes a single claim.
    • statuteIowa Code § 550.2enactment date not established
      Show the words that state the rule
      “Knows” or “knowledge” means that a person has actual knowledge of information or a circumstance or that the person has reason to know of the information or circumstance.
  9. read at the 2026-10-03 bar

    Will our Kansas confidentiality clause protect this information as a trade secret?

    Only if the information meets the act's definition, but the contract claim survives either way. A trade secret is information, including a formula, pattern, compilation, program, device, method, technique or process, that 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 is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (K.S.A. 60-3320(4)). Misappropriation includes disclosure or use of a trade secret without consent by a person who at the time knew or had reason to know that his knowledge of it was acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use (K.S.A. 60-3320(2)): the branch a confidentiality agreement supplies. An action for misappropriation must be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered, and a continuing misappropriation is a single claim (K.S.A. 60-3325).

    The trap

    Kansas has the displacement section that several states left out, and it has an express contract carve-out. K.S.A. 60-3326(a) provides that, except as subsection (b) says, the act "displaces conflicting tort, restitutionary and other law of this state providing civil remedies for misappropriation of a trade secret"; subsection (b) then preserves "Contractual remedies, whether or not based upon misappropriation of a trade secret", other civil remedies not based on misappropriation, and criminal remedies. So a well-drafted confidentiality covenant is not swept away by the act, and it is often the surer claim, because it does not require the information to satisfy the statutory definition. The displacement is real, not theoretical, though the posture is worth knowing: the trade-secret claimant's own brief conceded that the act “certainly does displace traditional tort remedies with respect to trade secrets” and, as the Court recorded, "essentially abandons any of its claims" for those losses, and the Court decided the question for itself anyway. In Wolfe Electric, Inc. v. Duckworth it held that whether tort claims seeking recovery for loss of trade secrets were preempted "is answered in the affirmative by K.S.A. 60-3326", because "tort causes of action cannot include a claim to recover for trade secrets; KUTSA is the exclusive remedy." The same Court expressly did not decide whether the act displaces tort claims for information that is NOT a trade secret, so a confidentiality covenant is the claim that does not depend on that question. Note too that reasonable efforts to maintain secrecy are part of that definition, so information the business does not actually guard is not a trade secret whatever the agreement calls it.

    as of 2026-10-08

    9 authorities

    • statuteK.S.A. 60-3320enactment date not established
      Show the words that state the rule
      "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (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, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteK.S.A. 60-3320enactment date not established
      Show the words that state the rule
      "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.
    • statuteK.S.A. 60-3325enactment date not established
      Show the words that state the rule
      An action for misappropriation must be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statuteK.S.A. 60-3326enactment date not established
      Show the words that state the rule
      (a) Except as provided in subsection (b), this act displaces conflicting tort, restitutionary and other law of this state providing civil remedies for misappropriation of a trade secret. (b) This act does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret; (2) other civil remedies that are not based upon misappropriation of a trade secret; or (3) criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteK.S.A. 60-3320enactment date not established
      Show the words that state the rule
      (2) "Misappropriation" means: (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; or (ii) 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 (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.
    • case266 P.3d 516Wolfe Electric, Inc. v. DuckworthKan.decided 2011read it at the source ↗
      Show the words that state the rule
      Whether Wolfe Electric’s trade secret claims based upon tort were preempted by KUTSA requires statutory interpretation, a question of law subject to de novo review. See Zimmerman v. Board of Wabaunsee County Comm’rs, 289 Kan. 926 , Syl. ¶ 1, 218 P.3d 400 (2009). *401 This question is answered in the affirmative by K.S.A. 60-3326.
    • case266 P.3d 516Wolfe Electric, Inc. v. DuckworthKan.decided 2011read it at the source ↗
      Show the words that state the rule
      Now we conclude in Issue 2 that the trial court also erroneously — and perhaps ironically — allowed Wolfe Electric to include a request for damages for trade secrets under the two tort causes of action. This is error because tort causes of action cannot include a claim to recover for trade secrets; KUTSA is the exclusive remedy. See K.S.A. 60-3326.
    • case266 P.3d 516Wolfe Electric, Inc. v. DuckworthKan.decided 2011read it at the source ↗
      Show the words that state the rule
      As for Wolfe Electric’s assertion that KUTSA does not displace other tort causes of action for recovery of damages for nontrade secrets, we do not address it for several reasons.
    • case266 P.3d 516Wolfe Electric, Inc. v. DuckworthKan.decided 2011read it at the source ↗
      Show the words that state the rule
      Wolfe Electric’s brief concedes that KUTSA “certainly does displace traditional tort remedies with respect to trade secrets” and essentially abandons any of its claims for recoveiy for loss of trade secrets through these two tort causes of action.
  10. read at the 2026-10-03 bar

    Does our NDA add anything to Maine trade-secret law, and does the Act swallow it?

    It adds a great deal, and the Act expressly leaves it alone. 10 M.R.S. § 1548(1) provides that "[e]xcept as provided in this section, this Act displaces conflicting tort, restitutionary and other laws of this State providing civil remedies for misappropriation of a trade secret", but that it "does not affect ... [c]ontractual remedies, whether or not based upon misappropriation of a trade secret", nor "[o]ther civil remedies that are not based upon misappropriation of a trade secret", which answers the displacement question for information that is not a trade secret at all. The statutory floor is narrow: a "[t]rade secret" is "information, including, but not limited to, a formula, pattern, compilation, program, device, method, technique or process" that "[d]erives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means" and "[i]s the subject of efforts that are reasonable under the circumstances to maintain its secrecy" (§ 1542(4)), and "a court examining a claim under the UTSA must determine whether the information at issue constitutes a 'trade secret'" before anything else (Spottiswoode v. Levine, where the claimant failed on exactly that and the judgment against it was affirmed). The contract can go wider: "[t]he confidential knowledge or information protected by a restrictive covenant need not be limited to information that is protected as a trade secret by the UTSA. We have not previously read such limitations into restrictive covenants and do not do so now" (Bernier v. Merrill Air Engineers, Inc.).

    The trap

    Bernier is the sentence that makes a Maine NDA worth drafting, but it comes with the Bernier qualification in the same passage: "[t]o be enforceable, however, restrictive covenants must be reasonable. The reasonableness of a restrictive covenant is a question of law." A confidentiality covenant that in substance stops the employee working is a restrictive covenant being tested for reasonableness, and 26 M.R.S. § 599-A(2) treats "confidential information that does not qualify as a trade secret" as a legitimate interest, which cuts both ways, since it is the interest that must justify a covenant no broader than necessary. Three things to know before choosing between the statutory claim and the contractual one. The statutory claim is harder than it looks: proving the information is a trade secret is only the first step, and "RBK could not recover damages or obtain injunctive relief under the UTSA without establishing 'misappropriation'" as the Act defines it. It is also time-limited in a way a contract claim is not: § 1547 requires an action for misappropriation "within 4 years after the misappropriation is discovered or, by the exercise of reasonable diligence, should have been discovered", and "a continuing misappropriation constitutes a single claim", so the clock does not restart with each use. And it carries a fee risk in both directions: under § 1545, where "a claim of misappropriation is made in bad faith" or "willful and malicious misappropriation exists", the court "may award reasonable attorneys fees to the prevailing party". This rule states no Maine limit on how long a confidentiality covenant may run.

    as of 2026-09-20

    13 authorities

    • statute10 M.R.S. § 1548enactment date not established
      Show the words that state the rule
      Except as provided in this section, this Act displaces conflicting tort, restitutionary and other laws of this State providing civil remedies for misappropriation of a trade secret. This Act does not affect: A. Contractual remedies, whether or not based upon misappropriation of a trade secret; [PL 1987, c. 143 (NEW).] B. Other civil remedies that are not based upon misappropriation of a trade secret;
    • statute10 M.R.S. § 1542enactment date not established
      Show the words that state the rule
      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
    • statute10 M.R.S. § 1542enactment date not established
      Show the words that state the rule
      "Trade secret" means information, including, but not limited to, a formula, pattern, compilation, program, device, method, technique or process, that: A. Derives independent economic value, actual or potential, from not being generally known
    • statute10 M.R.S. § 1547enactment date not established
      Show the words that state the rule
      An action for misappropriation must be brought within 4 years after the misappropriation is discovered or, by the exercise of reasonable diligence, should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statute10 M.R.S. § 1545enactment date not established
      Show the words that state the rule
      If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith or willful and malicious misappropriation exists, the court may award reasonable attorneys fees to the prevailing party.
    • case1999 ME 79Spottiswoode v. LevineMe.decided 1999read it at the source ↗
      Show the words that state the rule
      a court examining a claim under the UTSA must determine whether the information at issue constitutes a “trade secret,” as that term is defined in 10 M.R.S.A. § 1542(4).
    • case1999 ME 79Spottiswoode v. Levineme-medecided 1999read it at the source ↗
      Show the words that state the rule
      Even if the computer program qualified as a trade secret. RBK could not recover damages or obtain injunctive relief under the UTSA without establishing “misappropriation,” See 10 M.R.S.A § 1544. The term “misappropriation” means, inter alia: “[disclosure or use of a trade secret of another without express or implied consent by a person who ... [a]t the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was ... [a]cquired under circumstances giving rise to a duty to maintain its secrecy or limit its use....” 10 M.R.S.A. § 1542(2)(B).
    • case1999 ME 79Spottiswoode v. Levineme-medecided 1999read it at the source ↗
      Show the words that state the rule
      Thus, RBK bore the burden of establishing that the information at issue constituted a “trade secret” and that Levine “misappropriated” the protected information. The trial court found that RBK failed to sustain its burden. We are not compelled to find otherwise. The entry is: Judgment affirmed.
    • case2001 ME 17Bernier v. Merrill Air Engineers, Inc.Me.decided 2001read it at the source ↗
      Show the words that state the rule
      The confidential knowledge or information protected by a restrictive covenant need not be limited to information that is protected as a trade secret by the UTSA. We have not previously read such limitations into restrictive covenants and do not do so now.
    • case2001 ME 17Bernier v. Merrill Air Engineers, Inc.Me.decided 2001read it at the source ↗
      Show the words that state the rule
      To be enforceable, however, restrictive covenants must be reasonable. The reasonableness of a restrictive covenant is a question of law.
    • statute26 M.R.S. § 599-Aenactment date not established
      Show the words that state the rule
      Noncompete agreements are contrary to public policy and are enforceable only to the extent that they are reasonable and are no broader than necessary to protect one or more of the following legitimate business interests of the employer:
    • statute10 M.R.S. § 1542enactment date not established
      Show the words that state the rule
      Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statute26 M.R.S. § 599-Aenactment date not established
      Show the words that state the rule
      B. The employer's confidential information that does not qualify as a trade secret; or
  11. read at the 2026-10-03 bar

    Is our confidentiality and trade-secret covenant enforceable in Minnesota, and what does it get us?

    It is outside Minnesota's non-compete ban by the ban's own definition: 'A covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information', and it does not include a nonsolicitation agreement or an agreement restricting the ability to use client or contact lists or solicit customers of the employer (Minn. Stat. § 181.988, subd. 1(a)). On remedies, the Supreme Court has held that trade secrets and confidential information are both subject to the same duty not to disclose, so once the information has become generally available 'the initial conduct is still wrongful and the employer is still entitled to relief for any injury suffered as a result of the wrongful use'; where a trial court finds that a defendant wrongfully took and used a plaintiff's confidential information, the court may in its discretion issue an injunction restraining the defendant from using and profiting from that information (Cherne).

    The trap

    The carve-out in § 181.988 is a statement about what the section does not void: it is NOT a statement that your NDA is enforceable, and nothing in the section supplies a duration, a definition of confidential information, or any standard of reasonableness. Minnesota's own trade-secret statute, the Uniform Trade Secrets Act at Minn. Stat. §§ 325C.01 to 325C.08, is NOT among the statutes available here, so this rule cannot quote the definition of a trade secret, the misappropriation standard, or any displacement provision: do not assume from this rule how the Act treats a contract claim. The remedy trap is timing: Cherne holds that injunctive relief based on a contract must generally be coextensive with the terms of the contract, so if the restrictive period of a covenant not to compete has expired an injunction will not be granted to enforce that covenant. The injunction in Cherne survived because it was a remedy for breach of the duty not to use confidential information, and the Court expressly did not decide whether it could have issued for the expired covenant.

    as of 2026-09-17

    6 authorities

    • statuteMinn. Stat. § 181.988enactment date not established
      Show the words that state the rule
      (a) "Covenant not to compete" means an agreement between an employee and employer that restricts the employee, after termination of the employment, from performing: (1) work for another employer for a specified period of time; (2) work in a specified geographical area; or (3) work for another employer in a capacity that is similar to the employee's work for the employer that is party to the agreement. A covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information. A covenant not to compete does not include a nonsolicitation agreement, or agreement restricting the ability to use client or contact lists, or solicit customers of the employer.
    • case278 N.W.2d 81Cherne Industrial, Inc. v. Grounds & Associates, Inc.Minn.decided 1979read it at the source ↗
      Show the words that state the rule
      Where the information has, subsequent to the wrongful taking and use, become generally available, the initial conduct is still wrongful and the employer is still entitled to relief for any injury suffered as a result of the wrongful use. In Winston Research Corp. v. Minnesota Mining and Manufacturing Co., 350 F.2d 134 (9 Cir. 1965), the court of appeals upheld the district court’s granting of— “ * * * an injunction for the period which it concluded would be sufficient both to deny [the defendant] unjust enrichment and to protect [the plaintiff] from injury from the wrongful disclosure and use of [its] trade secrets by its former employees prior to public disclosure.” Id. at 142 . Since trade secrets and confidential information are both subject to the same duty not to disclose, see, Restatement, Agency (2d) § 396, the seme rule regarding remedies available when the information has become generally known applies.
    • case278 N.W.2d 81Cherne Industrial, Inc. v. Grounds & Associates, Inc.Minn.decided 1979read it at the source ↗
      Show the words that state the rule
      Since the trial court determined here that defendants *93 had wrongfully taken and used confidential information of the plaintiff, the district court could, in its discretion, issue an injunction restraining defendants from using and profiting from that information.
    • case278 N.W.2d 81Cherne Industrial, Inc. v. Grounds & Associates, Inc.Minn.decided 1979read it at the source ↗
      Show the words that state the rule
      We find that either, or both, of these bases justifies the 2-year injunction. Defendants argue that if the injunction was intended as a remedy for violation of the covenant not to compete, the issuance of the injunction after the expiration of the 2-year period of restriction in the covenant was improper. Generally, in-junctive relief based on a contract must be coextensive with the terms of the contract. See, e. g., Wagner v. A & B Personnel Systems, Ltd., 473 P.2d 179, 180 (Colo.App.1970). Thus, if the restrictive period of a covenant not to compete has expired, an injunction will not be granted to enforce the covenant.
    • case278 N.W.2d 81Cherne Industrial, Inc. v. Grounds & Associates, Inc.Minn.decided 1979read it at the source ↗
      Show the words that state the rule
      Nevertheless, there may be situations where injunctive relief extending beyond the expiration of the period established by the covenant is appropriate. See, American Eutectic Welding Alloys Sales Co. v. Rodriguez, 480 F.2d 223 (1 Cir. 1973); Premier Industrial Corp. v. Texas Industrial Fastener Co., 450 F.2d 444 (5 Cir. 1971). Since we have determined that the injunction in this case could be issued as a remedy for a breach of the duty not to use confidential information, we need not decide whether this injunction could be issued as a remedy for the breach of the covenant not to compete.
    • statuteMinn. Stat. § 181.988enactment date not established
      Show the words that state the rule
      Subd. 2. Covenants not to compete void and unenforceable. (a) Any covenant not to compete contained in a contract or agreement is void and unenforceable.
  12. read at the 2026-10-03 bar

    Does Montana's Uniform Trade Secrets Act limit or displace our confidentiality / trade-secret clause?

    No: the Act expressly preserves contract remedies even though it displaces the overlapping tort law. Montana has adopted the Uniform Trade Secrets Act (§§ 30-14-401 to 409, MCA, “MUTSA”), defining a “trade secret” as information or software that “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 “is the subject of efforts that are reasonable under the circumstances to maintain its secrecy” (§ 30-14-402(4)). “Misappropriation” covers both improper acquisition and unauthorized disclosure or use by someone who knew the information came from a breach of a duty of secrecy (§ 30-14-402(2)). The term the whole definition turns on is itself defined, and narrowly: “‘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” (§ 30-14-402(1)). Reverse engineering, independent development and anything a competitor could have worked out by proper means are not on that list. MUTSA's displacement section is narrow and reader-friendly: “Except as provided in subsection (2), this part displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret” (§ 30-14-408(1)), BUT subsection (2) carves your contract right straight back out: “This part does not affect…(a) contractual remedies, whether or not based upon misappropriation of a trade secret.” Associated Mgmt. Servs., Inc. v. Ruff confirms Montana courts apply the statutory definitions as written, holding “MUTSA defines actionable ‘misappropriation’ of a trade secret as the ‘disclosure or use…of a trade secret of another without express or implied consent by a person who…used improper means to acquire knowledge of the trade secret.’”

    The trap

    Your confidentiality clause almost certainly covers MORE than “trade secrets” as MUTSA narrowly defines them: the statute reaches only information with independent economic value from being secret AND subject to reasonable secrecy efforts. For information that does not meet that two-part test (a customer's identity alone, routine business terms, information that is or becomes public), MUTSA's displacement of overlapping tort law is irrelevant because the tort claim was never available in the first place, and your contract's confidentiality obligation is exactly the tool that reaches that broader category, since § 30-14-408(2)(a) leaves contract remedies untouched regardless of whether the leaked information rises to a trade secret at all. MUTSA also preserves criminal remedies and other civil remedies not based on misappropriation (§ 30-14-408(2)(b)-(c)). Where the information IS a trade secret, the statute offers something a contract claim usually will not: § 30-14-404 lets the complainant recover “both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss”, or in lieu of either “a reasonable royalty for a misappropriator's unauthorized use”, and adds exemplary damages where the misappropriation was willful and malicious. Pleading only breach of the confidentiality clause gives those up. Remember § 30-14-406's separate procedural protection: in any MUTSA action a court “shall preserve the secrecy of an alleged trade secret by reasonable means” (protective orders, in-camera hearings, sealed records), which matters for how you litigate a breach even where MUTSA does apply.

    as of 2026-09-20

    9 authorities

    • statuteMont. Code Ann. § 30-14-402enactment date not established
      Show the words that state the rule
      "Trade secret" means information or computer software, 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.
    • statuteMont. Code Ann. § 30-14-408enactment date not established
      Show the words that state the rule
      Except as provided in subsection (2), this part displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret.
    • statuteMont. Code Ann. § 30-14-408enactment date not established
      Show the words that state the rule
      This part does not affect: (a) contractual remedies, whether or not based upon misappropriation of a trade secret;
    • case424 P.3d 571Associated Mgmt. Servs., Inc. v. RuffMont.decided 2018read it at the source ↗
      Show the words that state the rule
      MUTSA defines actionable "misappropriation" of a trade secret as the "disclosure or use ***166 of a trade secret of another without express or implied consent by a person who ... used improper means to acquire knowledge of the trade secret."
    • statuteMont. Code Ann. § 30-14-406enactment date not established
      Show the words that state the rule
      In an action under this part, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval.
    • statuteMont. Code Ann. § 30-14-402enactment date not established
      Show the words that state the rule
      "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; (ii) at the time of disclosure or use, knew or had reason to know that the person's knowledge of the trade secret was: (A) derived from or through a person who had used 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 the person's 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.
    • statuteMont. Code Ann. § 30-14-408enactment date not established
      Show the words that state the rule
      (b) other civil remedies that are not based upon misappropriation of a trade secret; or (c) criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteMont. Code Ann. § 30-14-402enactment date not established
      Show the words that state the rule
      "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.
    • statuteMont. Code Ann. § 30-14-404enactment date not established
      Show the words that state the rule
      Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages may include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized use of a trade secret.
  13. read at the 2026-10-03 bar

    Does our NDA protect this information in Nebraska, and does the Trade Secrets Act displace our other claims?

    Only if the information is not ascertainable AT ALL by proper means (Nebraska's definition is narrower than the uniform act's), and the displacement question has no answer in the statute, because Nebraska never enacted the uniform displacement section. Neb. Rev. Stat. § 87-502(4) defines a trade secret as information that “Derives independent economic value, actual or potential, from not being known to, and not being ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use” and “Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” In First Express Servs. Group v. Easter the Supreme Court made the deleted-qualifier point in its own words (“The Legislature, however, deleted the qualifiers “generally” and “readily” from the statutory definition”), and then adopted and applied a commentator's gloss: “Nebraska’s statute greatly narrows the definition of a trade secret”, the gloss being that “if an alleged trade secret is ascertainable at all by any means that are not ‘improper,’ the would-be secret is peremptorily excluded from coverage under the [Act].” Dick v. Koski Prof. Group carries the same rule to a contractual confidentiality covenant: “our case law reflects that we have often treated “confidential information” and “trade secrets” inter- changeably”. There the jury was instructed that “If infor- mation is ascertainable at all by any means that are not improper, the information is not confidential information or a trade secret” and that “Information disclosed to customers without any confi- dentiality requirement, including pricing information, is not confidential information”, and the court found “nothing in the bylaws that convinces us that the court should have presented a different definition”. A customer list CAN qualify (Home Pride Foods, Inc. v. Johnson holds “that a customer list can be included in the definition of a trade secret under § 87-502”), but in First Express the list failed: “Because the information on the customer list was ascertainable through proper means, we conclude that, as a matter of law, it was not a trade secret.” The remedies are limited to what §§ 87-503 and 87-504 give: § 87-503 allows an injunction against “Actual or threatened misappropriation”, and Neb. Rev. Stat. § 87-504 gives actual loss plus non-duplicative unjust enrichment or a reasonable royalty, with no exemplary multiplier and no attorney fees, and Neb. Rev. Stat. § 87-506 requires that “An action for misappropriation shall be brought within four years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered.”

    The trap

    The NDA does not enlarge the protected set. Nebraska treats “confidential information” and “trade secret” interchangeably, and Dick v. Koski applies the ascertainable-at-all test to a confidentiality covenant in a firm's own bylaws, so labelling pricing, customer or process information confidential in your contract buys nothing if it can be worked out by any proper means, and information you already gave customers without a confidentiality requirement is outside the covenant by definition. Second trap, and it is the one the statute creates: THERE IS NO DISPLACEMENT SECTION. Nebraska enacted sections 1 to 6 of the Uniform Trade Secrets Act and dropped section 7, Effect on Other Law, along with the uniform act's exemplary-damages, attorney-fee and uniformity-of-construction provisions. Neb. Rev. Stat. § 87-507 is a pure prospective-effect section: “The Trade Secrets Act shall not apply to any misappropriation occurring prior to July 9, 1988.” So Nebraska has neither a clause displacing your common-law claims nor a clause preserving your contract claim, and no Nebraska appellate decision fills the gap. Anyone who tells you the Nebraska Act expressly saves your contract claim is describing the uniform act, not this one. Third trap: the definition's second half is a housekeeping requirement you have to be able to prove (“efforts that are reasonable under the circumstances to maintain its secrecy”), and Magistro v. J. Lou, Inc. shows both halves being met on recipes and the plaintiff STILL losing, for failure to prove continued use. Fourth, on drafting: because the Nebraska covenant and the Nebraska trade secret are measured by the same yardstick, a confidentiality covenant with no time limit does not get the protection the uniform act's saving clause gives elsewhere. Nothing read here establishes that an unlimited-duration NDA is good or bad in Nebraska.

    as of 2026-09-20

    16 authorities

    • statuteNeb. Rev. Stat. § 87-502enactment date not established
      Show the words that state the rule
      Trade secret shall mean information, including, but not limited to, a drawing, formula, pattern, compilation, program, device, method, technique, code, or process that: (a) Derives independent economic value, actual or potential, from not being known to, and not being 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.
    • statuteNeb. Rev. Stat. § 87-506enactment date not established
      Show the words that state the rule
      An action for misappropriation shall be brought within four years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For purposes of this section, a continuing misappropriation shall constitute a single claim.
    • statuteNeb. Rev. Stat. § 87-507enactment date not established
      Show the words that state the rule
      The Trade Secrets Act shall not apply to any misappropriation occurring prior to July 9, 1988. With respect to a continuing misappropriation that began prior to July 9, 1988, such act also shall not apply to the continuing misappropriation that occurs after such date.
    • case286 Neb. 912First Express Servs. Group v. EasterNeb.decided 2013read it at the source ↗
      Show the words that state the rule
      Because the information on the customer list was ascertainable through proper means, we conclude that, as a matter of law, it was not a trade secret. We reverse the jury’s finding against Arlene on the misappro- priation of trade secrets claim.
    • case950 N.W.2d 321Dick v. Koski Prof. GroupNeb.decided 2020read it at the source ↗
      Show the words that state the rule
      As Dick points out, our case law reflects that we have often treated “confidential information” and “trade secrets” inter- changeably.
    • case950 N.W.2d 321Dick v. Koski Prof. GroupNeb.decided 2020read it at the source ↗
      Show the words that state the rule
      If infor- mation is ascertainable at all by any means that are not improper, the information is not confidential information or a trade secret.
    • case950 N.W.2d 321Dick v. Koski Prof. GroupNeb.decided 2020read it at the source ↗
      Show the words that state the rule
      Information disclosed to customers without any confi- dentiality requirement, including pricing information, is not confidential information.
    • case634 N.W.2d 774Home Pride Foods, Inc. v. JohnsonNeb.decided 2001read it at the source ↗
      Show the words that state the rule
      We agree and hold that a customer list can be included in the definition of a trade secret under § 87-502.
    • case634 N.W.2d 774Home Pride Foods, Inc. v. JohnsonNeb.decided 2001read it at the source ↗
      Show the words that state the rule
      Whether information sought to be protected rises to the level of a trade secret under the act is a question of fact.
    • case703 N.W.2d 887Magistro v. J. Lou, Inc.Neb.decided 2005read it at the source ↗
      Show the words that state the rule
      The recipes derived independent economic value from not being known to other persons, and Magistro and his family made reasonable efforts under the circumstances to maintain their secrecy.
    • statuteNeb. Rev. Stat. § 87-504enactment date not established
      Show the words that state the rule
      Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or having reason to know of the misappropriation renders a monetary recovery inequitable, a complainant shall be entitled to recover damages for misappropriation. Damages may include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized disclosure or use of a trade secret.
    • case286 Neb. 912First Express Servs. Group v. EasterNeb.decided 2013read it at the source ↗
      Show the words that state the rule
      The Legislature, however, deleted the qualifiers “generally” and “readily” from the statutory definition.17 And as one commen- tator noted, Nebraska’s statute greatly narrows the definition of a trade secret: “[U]nder the literal terms of the . . . language, if an alleged trade secret is ascertainable at all by any means that are not ‘improper,’ the would-be secret is peremptorily excluded from coverage under the [Act].”
    • statuteNeb. Rev. Stat. § 87-502enactment date not established
      Show the words that state the rule
      Improper means shall mean theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means
    • case950 N.W.2d 321Dick v. Koski Prof. GroupNeb.decided 2020read it at the source ↗
      Show the words that state the rule
      There is nothing in the bylaws that convinces us that the court should have presented a different definition than that set forth in jury instructions Nos. 12 and 13.
    • statuteNeb. Rev. Stat. § 87-503enactment date not established
      Show the words that state the rule
      Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.
    • statuteNeb. Rev. Stat. § 87-501enactment date not established
      Show the words that state the rule
      Sections 87-501 to 87-507 shall be known and may be cited as the Trade Secrets Act.
  14. read at the 2026-10-03 bar

    What does our NDA add in New Jersey, and what can it not cover?

    The New Jersey Trade Secrets Act's rights, remedies and prohibitions are IN ADDITION TO and cumulative of any other right, remedy or prohibition under New Jersey common or statutory law, and nothing in the Act denies, abrogates or impairs them, except that the Act supersedes conflicting tort, restitutionary and other New Jersey law providing civil remedies for misappropriation of a trade secret, and that against a public entity or public employee the Tort Claims Act supersedes conflicting provisions of the Act (§ 56:15-9(c)). Before the Act, the Supreme Court held that information need not rise to the level of a trade secret to be protected (Lamorte Burns, a duty-of-loyalty and tortious-interference case). The Act itself defines what it supersedes other law FOR: "misappropriation" is acquisition by one who knows or has reason to know the secret was acquired by improper means, or disclosure or use without consent by one who used improper means, knew the knowledge was derived through them, or knew before a material change of position; "improper means" includes breach or inducement of a breach of an express or implied duty of secrecy and unauthorized access; and "proper means" (which answer an improper-means allegation, though § 56:15-5 bars a misappropriator from defending on the ground that proper means merely existed) include independent invention and reverse engineering, which § 56:15-2 limits to a known product whose acquisition was lawful (§§ 56:15-2, 56:15-5). A complainant recovers actual loss and unjust enrichment or a reasonable royalty, and for wilful and malicious misappropriation punitive damages up to twice the award (§ 56:15-4); fees and expert costs go to the prevailing party for wilful and malicious misappropriation or a bad-faith claim (§ 56:15-6); and the action must be brought within three years of actual or constructive discovery, a continuing misappropriation being one claim (§ 56:15-8). On the employment side, § 10:5-12.7 separately voids any provision in an employment contract that waives a substantive or procedural right or remedy relating to a discrimination, retaliation or harassment claim, except in a collective bargaining agreement (§ 10:5-12.7(c)), and bars prospective waiver of any right under the Law Against Discrimination.

    The trap

    Read the savings clause carefully: § 56:15-9 preserves other law but supersedes conflicting 'tort, restitutionary, and other law ... providing civil remedies for misappropriation of a trade secret'. The statute does not name contract remedies either way; that an NDA claim survives the Act is a reading of subsection (a), not something this rule verified from a court. The New Jersey-specific limit on the NDA itself runs the other way from the usual instinct to draft the clause as broadly as possible: a provision in any employment contract OR SETTLEMENT AGREEMENT whose purpose or effect is to conceal the details of a claim of discrimination, retaliation or harassment is against public policy and unenforceable against the employee, and if the employee publicly reveals enough detail to make the employer reasonably identifiable, it becomes unenforceable against the EMPLOYER too. Every such settlement must carry a bold, prominently placed notice saying so (§ 10:5-12.8(b)). The statute expressly declines to prohibit two things a drafter can still require: a non-compete, and an agreement not to disclose proprietary information, which it defines as only non-public trade secrets, business plan and customer information (§ 10:5-12.8(c)). And enforcing, or attempting to enforce, a provision § 10:5-12.7 voids makes the enforcing person liable for the employee's reasonable attorney fees and costs (§ 10:5-12.9).

    as of 2026-09-16

    15 authorities

    • statuteN.J. Stat. Ann. § 56:15-9enactment date not established
      Show the words that state the rule
      9. a. The rights, remedies and prohibitions provided under this act are in addition to and cumulative of any other right, remedy or prohibition provided under the common law or statutory law of this State and nothing contained herein shall be construed to deny, abrogate or impair any common law or statutory right, remedy or prohibition except as expressly provided in subsection b. of this section. b. This act shall supersede conflicting tort, restitutionary, and other law of this State providing civil remedies for misappropriation of a trade secret. c. In any action for misappropriation of a trade secret brought against a public entity or public employee, the provisions of the "New Jersey Tort Claims Act" (N.J.S.59:1-1 et seq.) shall supersede any conflicting provisions of this act.
    • statuteN.J. Stat. Ann. § 10:5-12.8enactment date not established
      Show the words that state the rule
      A provision in any employment contract or settlement agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment (hereinafter referred to as a "non-disclosure provision") shall be deemed against public policy and unenforceable against a current or former employee (hereinafter referred to as an "employee") who is a party to the contract or settlement. If the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable, then the non-disclosure provision shall also be unenforceable against the employer.
    • case167 N.J. 285Lamorte Burns & Co. v. WaltersN.J.decided 2001read it at the source ↗
      Show the words that state the rule
      Importantly, however, information need not rise to the level of a trade secret to be protected. In Platinum Management, Inc. v. Dahms, 285 N.J.Super. 274, 295 , 666 A.2d 1028 (Law Div.1995), the court held that to be legally protected, the information need not constitute a trade secret, and indeed, may otherwise be publicly available. The key to determining the misuse of information is the relationship of the parties at the time of disclosure and the intended use of the information.
    • statuteN.J. Stat. Ann. § 56:15-2enactment date not established
      Show the words that state the rule
      "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 of the trade secret owner 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 the knowledge of the trade secret was derived or acquired through improper means; 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 through improper means.
    • statuteN.J. Stat. Ann. § 56:15-2enactment date not established
      Show the words that state the rule
      "Proper means" means discovery by independent invention, discovery by reverse engineering, discovery under a license from the owner of the trade secret, observation of the information in public use or on public display, obtaining the trade secret from published literature, or discovery or observation by any other means that is not improper. "Reverse engineering" means the process of starting with the known product and working backward to find the method by which it was developed so long as the acquisition of the known product was lawful or from sources having the legal right to convey it, such as the purchase of the item on the open market.
    • statuteN.J. Stat. Ann. § 56:15-2enactment date not established
      Show the words that state the rule
      "Improper means" means the theft, bribery, misrepresentation, breach or inducement of a breach of an express or implied duty to maintain the secrecy of, or to limit the use or disclosure of, a trade secret, or espionage through electronic or other means, access that is unauthorized or exceeds the scope of authorization, or other means that violate a person's rights under the laws of this State.
    • statuteN.J. Stat. Ann. § 56:15-4enactment date not established
      Show the words that state the rule
      4. a. Except to the extent that circumstances, including a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized disclosure or use of a trade secret. b. If willful and malicious misappropriation exists, the court may award punitive damages in an amount not exceeding twice any award made under subsection a. of this section.
    • statuteN.J. Stat. Ann. § 56:15-6enactment date not established
      Show the words that state the rule
      The court may award to the prevailing party reasonable attorney's fees and costs, including a reasonable sum to cover the service of expert witnesses, if: a. willful and malicious misappropriation exists; b. a claim of misappropriation is made in bad faith; or c. a motion to terminate an injunction is made or resisted in bad faith. For purposes of this section, "bad faith" is that which is undertaken or continued solely to harass or maliciously injure another, or to delay or prolong the resolution of the litigation, or that which is without any reasonable basis in fact or law and not capable of support by a good faith argument for an extension, modification or reversal of existing law.
    • statuteN.J. Stat. Ann. § 56:15-8enactment date not established
      Show the words that state the rule
      An action for misappropriation shall be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statuteN.J. Stat. Ann. § 10:5-12.8enactment date not established
      Show the words that state the rule
      b. Every settlement agreement resolving a discrimination, retaliation, or harassment claim by an employee against an employer shall include a bold, prominently placed notice that although the parties may have agreed to keep the settlement and underlying facts confidential, such a provision in an agreement is unenforceable against the employer if the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable. c. Notwithstanding any other provision of law to the contrary, this section shall not be construed to prohibit an employer from requiring an employee to sign an agreement: (1) in which the employee agrees not to enter into competition with the employer during or after employment; or (2) in which the employee agrees not to disclose proprietary information, which includes only non-public trade secrets, business plan and customer information.
    • statuteN.J. Stat. Ann. § 10:5-12.7enactment date not established
      Show the words that state the rule
      a. A provision in any employment contract that waives any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment shall be deemed against public policy and unenforceable. b. No right or remedy under the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.) or any other statute or case law shall be prospectively waived. c. This section shall not apply to the terms of any collective bargaining agreement between an employer and the collective bargaining representative of the employees.
    • case167 N.J. 285Lamorte Burns & Co. v. WaltersN.J.decided 2001read it at the source ↗
      Show the words that state the rule
      We conclude, therefore, that the client claim file information taken by defendants was confidential and proprietary information belonging to plaintiff.
    • case167 N.J. 285Lamorte Burns & Co. v. WaltersN.J.decided 2001read it at the source ↗
      Show the words that state the rule
      Accordingly, the judgment of the Appellate Division is reversed, in part, and the judgment of the Chancery Division sustaining plaintiffs tort claims is reinstated.
    • statuteN.J. Stat. Ann. § 56:15-5enactment date not established
      Show the words that state the rule
      5. A person who misappropriates a trade secret shall not use as a defense to the misappropriation that proper means to acquire the trade secret existed at the time of the misappropriation.
    • statuteN.J. Stat. Ann. § 10:5-12.9enactment date not established
      Show the words that state the rule
      3. A person who enforces or attempts to enforce a provision deemed against public policy and unenforceable pursuant to P.L.2019, c.39 (C.10:5-12.7 et seq.) shall be liable for the employee's reasonable attorney fees and costs.
  15. read at the 2026-10-03 bar

    Does our NDA protect this information as a trade secret in New York?

    No general New York trade-secrets statute was found among the New York statutes available for this research; the Court of Appeals says there is no generally accepted definition of a trade secret, and the definition in Restatement of Torts § 757, comment b has been cited with approval by that court and others: a trade secret is any formula, pattern, device or compilation of information which is used in one's business and which gives the holder an opportunity to obtain an advantage over competitors who do not know or use it. The Restatement suggests that in deciding a trade secret claim several factors should be considered: the extent to which the information is known outside the business; the extent to which it is known by employees and others involved in the business; the extent of measures taken to guard its secrecy; its value to the business and its competitors; the amount of effort or money expended in developing it; and the ease or difficulty with which it could be properly acquired or duplicated by others. Above all, the information must in fact be secret, and whether it is is generally a question of fact.

    The trap

    A contract label does not make a trade secret in New York. Labelling material confidential in an NDA does not answer the Restatement factors, and secrecy is generally a question of fact. In Ashland the trial court found the plaintiff's investment model was not a trade secret but a promotional device, because the trial court credited an expert 'who testified that a financial analyst could, based on the public disclosures made by Ashland, reproduce the calculations without access to the internal computer commands which constitute the Alpha software'; the Court of Appeals held that finding supported by the record and beyond its review, and affirmed the order below. The practical consequence is that confidentiality obligations are enforced as CONTRACT promises on their own terms while a trade-secret claim is judged independently, so the measures-to-guard-secrecy factor has to be met in operations, not only in drafting.

    as of 2026-09-16

    3 authorities

    • case82 N.Y.2d 395Ashland Management Inc. v. JanienN.Y.decided 1993read it at the source ↗
      Show the words that state the rule
      There is no generally accepted definition of a trade secret but that found in section 757 of Restatement of Torts, comment b has been cited with approval by this and other courts (Matter of New York Tel. Co. v Public Serv. Commn., 56 NY2d 213, 219, n 3 ; see also, Delta Filter Corp. v Morin, 108 AD2d 991, 992 ; Eagle Comtronics v Pico, Inc., 89 AD2d 803, 804 , lv denied 58 NY2d 601 ). It defines a trade secret as "any formula, pattern, device or compilation of information which is used in one’s business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it.” (Id.) The Restatement suggests that in deciding a trade secret claim several factors should be considered: "(1) the extent to which the information is known outside of [the] business; (2) the extent to which it is known by employees and others involved in [the] business; (3) the extent of measures taken by [the business] to guard the secrecy of the information; (4) the value of the information to [the business] and [its] competitors; (5) the amount of effort or money expended by [the business] in developing the information; (6) the ease or difficulty with which the information could be properly acquired or duplicated by others” (Restatement of Torts § 757, comment b). As these considerations demonstrate, a trade secret must first of all be secret: whether it is is generally a question of fact
    • case82 N.Y.2d 395Ashland Management Inc. v. Janiendecided 1993read it at the source ↗
      Show the words that state the rule
      The court concluded that in view of the ease with *408 which others could acquire and duplicate the information, Alpha was not a trade secret but a promotional device. Based on this, it determined defendant was not guilty of misappropriation and the Appellate Division affirmed. This finding is supported by evidence in the record and is, therefore, beyond the scope of our review. Accordingly, the order of the Appellate Division should be affirmed, with costs.
    • case82 N.Y.2d 395Ashland Management Inc. v. JanienN.Y.decided 1993read it at the source ↗
      Show the words that state the rule
      Ashland maintains that in finding Alpha was not a trade secret the court relied on the fact that its six financial criteria were public knowledge. It contends the trade secret at issue is not the published criteria used in the calculations, but rather the series of mathematical formulae used to evaluate the criteria (cf., Integrated Cash Mgt. Servs. v Digital Transactions, 920 F2d 171, 174 [2d Cir]). There was conflicting evidence on the point but the trial court chose to credit defendant’s expert who testified that a financial analyst could, based on the public disclosures made by Ashland, reproduce the calculations without access to the internal computer commands which constitute the Alpha software.
  16. read at the 2026-10-03 bar

    Does our NDA protect this information in North Carolina, and what does the Trade Secrets Protection Act add?

    The Act protects only what meets its definition, gives its own remedies, and runs for three years from discoverability. Under N.C.G.S. § 66-152(3) a 'trade secret' is 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, and the section adds that the existence of a trade secret 'shall not be negated merely because the information comprising the trade secret has also been developed, used, or owned independently by more than one person, or licensed to other persons', so sharing information under licence does not by itself destroy the status. In Rel. Ins. the Supreme Court of North Carolina recorded the six factors North Carolina and federal courts weigh in deciding whether information qualifies: how far it is known outside the business, how far it is known within it, the measures taken to guard secrecy, its value to the business and its competitors, the effort or money spent developing it, and the ease or difficulty with which others could properly acquire or duplicate it. Section 66-153 gives the owner of a trade secret a remedy by civil action for misappropriation, which § 66-152(1) defines as acquisition, disclosure or use of another's trade secret without express or implied authority or consent, unless the trade secret was arrived at by independent development or reverse engineering or was obtained from a person with a right to disclose it. The remedies are statutory: § 66-154(a) allows a preliminary injunction during the action and requires a permanent injunction on a judgment finding misappropriation for the period the trade secret exists plus any further period needed to eliminate the unjust advantage; § 66-154(b) allows actual damages measured by the economic loss or the unjust enrichment, whichever is greater; and § 66-154(c) allows punitive damages where wilful and malicious misappropriation exists. Section 66-157 requires an action for misappropriation to be commenced within three years after the misappropriation complained of is or reasonably should have been discovered.

    The trap

    The statutory definition does the work the NDA cannot. Information the contract labels 'Confidential Information' but which is readily ascertainable by independent development or reverse engineering is not a trade secret under § 66-152(3)a, and information the owner has not protected by efforts reasonable in the circumstances is not a trade secret under § 66-152(3)b, so the confidentiality programme, not the clause, decides the statutory claim. Section 66-155 then sets the burden, and in 2026 the Supreme Court of North Carolina read it more narrowly than its words first suggest. The section says misappropriation is prima facie established by substantial evidence that the person both (1) knows or should have known of the trade secret and (2) 'has had a specific opportunity to acquire it for disclosure or use or has acquired, disclosed, or used it without the express or implied consent or authority of the owner'. Read alone, limb (2) looks as though the want of consent attaches only to actual acquisition. In Rel. Ins. the Court held otherwise: harmonising limb (2) with the § 66-152(1) definition, it must be read as requiring BOTH a specific opportunity to acquire AND an absence of express or implied consent or authority, so 'an employer cannot state a prima facie case against its employee merely by showing that it gave the employee access to its trade secrets at some point'. The employer must show the opportunity arose after its consent or authority had ceased, and a specific opportunity must be 'a discrete, identifiable instance of means to access the trade secret'. So an NDA that grants broad access during employment makes the employer's prima facie case harder, not easier. Two further limits. The statutory rebuttal (substantial evidence of independent development, reverse engineering, or receipt from a person with a right to disclose) is not the defendant's only route: § 66-155 closes by providing that the section 'shall not be construed to deprive the person against whom relief is sought of any other defenses provided under the law'. And fees run both ways under § 66-154(d): the court may award reasonable attorneys' fees to the prevailing party if a claim of misappropriation is made in bad faith OR if wilful and malicious misappropriation exists. NOT ESTABLISHED HERE: whether the Act displaces a parallel contract or common-law claim. Article 24 of Chapter 66 was read section by section and it runs §§ 66-152 to 66-157 with no displacement or preemption provision in any of them; but 43 published North Carolina opinions mention § 66-152 and only the one relied on here was read, so no view is offered on what those decisions say about displacement. Also not established: whether a confidentiality covenant with no time limit is enforceable as to information that is not a trade secret, on which nothing was read.

    as of 2026-09-17

    16 authorities

    • statuteN.C.G.S. § 66-152enactment date not established
      Show the words that state the rule
      "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.
    • statuteN.C.G.S. § 66-152enactment date not established
      Show the words that state the rule
      (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.
    • statuteN.C.G.S. § 66-152enactment date not established
      Show the words that state the rule
      The existence of a trade secret shall not be negated merely because the information comprising the trade secret has also been developed, used, or owned independently by more than one person, or licensed to other persons.
    • caseNo. 68A25 (N.C., filed 22 May 2026)Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLCN.C.decided 2026
      Show the words that state the rule
      In determining whether information constitutes a trade secret, North Carolina and federal courts consider six factors: (1) The extent to which the information is known outside the business; (2) the extent to which it is known to employees and others involved in the business; (3) the extent of measures taken to guard secrecy of the information; (4) the value of information to the business and its competitors; (5) the amount of effort or money expended in developing the information; and (6) the ease or difficulty with which the information could properly be acquired or duplicated by others.
    • statuteN.C.G.S. § 66-157enactment date not established
      Show the words that state the rule
      An action for misappropriation of a trade secret must be commenced within three years after the misappropriation complained of is or reasonably should have been discovered.
    • statuteN.C.G.S. § 66-154enactment date not established
      Show the words that state the rule
      If a claim of misappropriation is made in bad faith or if willful and malicious misappropriation exists, the court may award reasonable attorneys' fees to the prevailing party.
    • statuteN.C.G.S. § 66-153enactment date not established
      Show the words that state the rule
      The owner of a trade secret shall have remedy by civil action for misappropriation of his trade secret.
    • statuteN.C.G.S. § 66-154enactment date not established
      Show the words that state the rule
      (a) Except as provided herein, actual or threatened misappropriation of a trade secret may be preliminarily enjoined during the pendency of the action and shall be permanently enjoined upon judgment finding misappropriation for the period that the trade secret exists plus an additional period as the court may deem necessary under the circumstances to eliminate any inequitable or unjust advantage arising from the misappropriation.
    • statuteN.C.G.S. § 66-154enactment date not established
      Show the words that state the rule
      (b) In addition to the relief authorized by subsection (a), actual damages may be recovered, measured by the economic loss or the unjust enrichment caused by misappropriation of a trade secret, whichever is greater. (c) If willful and malicious misappropriation exists, the trier of fact also may award punitive damages in its discretion.
    • statuteN.C.G.S. § 66-156enactment date not established
      Show the words that state the rule
      In an action under this Article, a court shall protect an alleged trade secret by reasonable steps which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action subject to further court order, and ordering any person who gains access to an alleged trade secret during the litigation not to disclose such alleged trade secret without prior court approval.
    • statuteN.C.G.S. § 66-155enactment date not established
      Show the words that state the rule
      This prima facie evidence is rebutted by the introduction of substantial evidence that the person against whom relief is sought acquired the information comprising the trade secret by independent development, reverse engineering, or it was obtained from another person with a right to disclose the trade secret. This section shall not be construed to deprive the person against whom relief is sought of any other defenses provided under the law.
    • statuteN.C.G.S. § 66-155enactment date not established
      Show the words that state the rule
      Misappropriation of a trade secret is prima facie established by the introduction of substantial evidence that the person against whom relief is sought both: (1) Knows or should have known of the trade secret; and (2) Has had a specific opportunity to acquire it for disclosure or use or has acquired, disclosed, or used it without the express or implied consent or authority of the owner.
    • caseNo. 68A25 (N.C., filed 22 May 2026)Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLCN.C.decided 2026
      Show the words that state the rule
      Accordingly, to harmonize the two provisions and give effect to the definition set forth in § 66-152(1), we must read § 66-155(2) as requiring both (i) a specific opportunity to acquire and (ii) an absence of express or implied consent or -25- REL. INS., INC. V. PILOT RISK MGMT. CONSULTING, LLC Opinion of the Court authority to disclose or use the trade secret.
    • caseNo. 68A25 (N.C., filed 22 May 2026)Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLCN.C.decided 2026
      Show the words that state the rule
      This, in turn, means that an employer cannot state a prima facie case against its employee merely by showing that it gave the employee access to its trade secrets at some point. Rather, an employer must show that the employee had the specific opportunity to acquire the trade secret after the employer’s express or implied consent or authority ceased to exist.
    • caseNo. 68A25 (N.C., filed 22 May 2026)Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLCN.C.decided 2026
      Show the words that state the rule
      In short, the plain language of § 66-155(2) permits a claimant to establish a prima facie case of misappropriation with substantial evidence of a specific opportunity to acquire the trade secret—so long as that specific opportunity occurred absent consent or authority of the owner. A specific opportunity must be a discrete, identifiable instance of means to access the trade secret.
    • caseNo. 68A25 (N.C., filed 22 May 2026)Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLCN.C.decided 2026
      Show the words that state the rule
      Based on the foregoing, we affirm the Business Court’s grant of summary judgment as to plaintiffs’ unjust enrichment claim but reverse the Business Court’s grant of summary judgment as to all other claims plaintiffs raised on appeal and remand for further proceedings not inconsistent with this opinion. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.
  17. read at the 2026-10-03 bar

    Can we bring a misappropriation claim over information this contract was supposed to keep confidential, and does it have to be a trade secret?

    Yes, if the information meets North Dakota's Uniform Trade Secrets Act definition, and a claim labelled "misappropriation" is read against that Act's own definitions. N.D.C.C. § 47-25.1-01 defines a "trade secret" as information "that: - 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 - Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy." "Misappropriation" is defined in the same section, reaching acquisition "by a person who knows or has reason to know that the trade secret was acquired by improper means" and disclosure or use "without express or implied consent" by a person in one of several defined states of knowledge, with "[i]mproper means" defined to include "theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means." N.D.C.C. § 47-25.1-02(1) then gives injunctive relief for a violation: "Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction must be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time to eliminate commercial advantage that otherwise would be derived from the misappropriation." McColl Farms, LLC v. Pflaum confirms the scope of a "misappropriation" claim is narrow: the trial court's dismissal rested on the premise that "misappropriation is a cause of action that relates exclusively to the wrongful acquisition or disclosure of a trade secret under N.D.C.C. § 47-25.1-01." The Supreme Court affirmed that dismissal on a different ground, that the corporate and limited-liability-company remedies the plaintiff relied on did not reach a defendant who "was not a corporate officer, director, manager, or governor of the company," so the premise was left standing rather than adopted.

    The trap

    McColl Farms shows a plaintiff cannot use the label "misappropriation" to reach conduct that is really conversion, embezzlement, or another tort just because the money or property taken had value: the trial court dismissed a misappropriation claim as redundant of a conversion claim on exactly that reasoning, and the Supreme Court's review did not disturb the premise that misappropriation under the Act is confined to trade secrets as § 47-25.1-01 defines them. A confidentiality or non-disclosure clause protecting information that does NOT meet the Act's two-part definition (independent economic value from secrecy, plus reasonable efforts to keep it secret) gets no relief from this Act at all: the contract's own confidentiality promise, not the UTSA, is what would have to carry that protection. The Act says as much itself: it "displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret," but it "does not affect" "[c]ontractual remedies, whether or not based upon misappropriation of a trade secret." The confidentiality clause is not merely the fallback, it is expressly preserved.

    as of 2026-09-21

    6 authorities

    • statuteN.D.C.C. § 47-25.1-01enactment date not established
      Show the words that state the rule
      "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: - 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 - Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteN.D.C.C. § 47-25.1-02enactment date not established
      Show the words that state the rule
      Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction must be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time to eliminate commercial advantage that otherwise would be derived from the misappropriation. - In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable. - In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order.
    • case837 N.W.2d 359McColl Farms, LLC v. PflaumN.D.decided 2013read it at the source ↗
      Show the words that state the rule
      The court dismissed McColl Farms’ misappropriation claim stating misappropriation is a cause of action that relates exclusively to the wrongful acquisition or disclosure of a trade secret under N.D.C.C. § 47-25.1-01, the allegations are the same as those for the conversion claim, the allegations are redundant, and North Dakota law does not recognize a claim for misappropriation.
    • case837 N.W.2d 359McColl Farms, LLC v. PflaumN.D.decided 2013read it at the source ↗
      Show the words that state the rule
      Pflaum was not a corporate officer, director, manager, or governor of the company, and therefore this case is different from Thompson, and the statutory provisions do not apply. We conclude the court did not err in dismissing McColl Farms’ misappropriation claim.
    • statuteN.D.C.C. § 47-25.1-01enactment date not established
      Show the words that state the rule
      "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: - 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 - Disclosure or use of a trade secret of another without express or implied consent by a person who: - Used improper means to acquire knowledge of the trade secret; - At the time of disclosure or use, knew or had reason to know that the person's 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 seeking relief to maintain its secrecy or limit its use; or - Before a material change of the person's 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.
    • statuteN.D.C.C. § 47-25.1-07enactment date not established
      Show the words that state the rule
      Except as provided in subsection 2, this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. - This chapter does not affect: - Contractual remedies, whether or not based upon misappropriation of a trade secret; - Other civil remedies that are not based upon misappropriation of a trade secret; or - Criminal remedies, whether or not based upon misappropriation of a trade secret.
  18. read at the 2026-10-03 bar

    Does our confidentiality clause actually protect this information in Ohio?

    Ohio's Uniform Trade Secrets Act protects information only if it meets the statutory definition. R.C. 1333.61(D), as the Supreme Court of Ohio quoted it, covers information (including any business information or plans, financial information, or listing of names, addresses, or telephone numbers) that both (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 (Al Minor & Associates). The Court also held that client information does not lose its status as a trade secret, or the protection of the Act, because it has been memorised by a former employee.

    The trap

    Both statutory limbs are doing work, and the second is the one a confidentiality clause can fail. Al Minor turned on a firm that maintained a confidential client list; the Court had earlier established, in Plain Dealer, a six-factor test for whether information constitutes a trade secret under R.C. 1333.61(D), including the extent to which the information is known outside the business, the extent to which it is known to employees, and the precautions taken by the holder to guard the secrecy of the information. A clause that labels everything confidential does not satisfy limb (2) by itself, because the statute asks what efforts were actually made: whether information is a trade secret is a question of fact, the party claiming the status bears the burden of identifying and demonstrating that the material falls in the statute's categories, and conclusory statements about the factors without supporting evidence do not meet it (Chlebina). Note also that the employee in Al Minor had signed neither an employment contract nor a non-competition agreement, so the protection came from the statute rather than from a covenant.

    as of 2026-09-17

    7 authorities

    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      “(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. {¶ 15} “(2) It is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” R.C. 1333.61(D).
    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      After review, we have concluded that the client information at issue in this case did not lose its status as a trade secret, or the protection of the UTSA, because it had been memorized by a former employee.
    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      “[I]nformation, 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:
    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      Furthermore, in Plain Dealer, 80 Ohio St.3d at 524-525 , 687 N.E.2d 661 , we established a six-factor test for determining whether information constitutes a trade secret pursuant to R.C. 1333.61(D): “(1) The extent to which the information is known outside the business; (2) the extent to which it is known to those inside the business, ie., by the employees; (3) the precautions taken by the holder of the trade secret to guard the secrecy of the information; (4) the savings effected and the value to the holder in having the information as against competitors; (5) the amount of effort or money expended in obtaining and developing the information; and (6) the amount of time and expense it would take for others to acquire and duplicate the information.” Id., citing Pyromatics, Inc. v. Petruziello (1983), 7 Ohio App.3d 131, 134-135 , 7 OBR 165, 454 N.E.2d 588 .
    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      In 1998, AMA hired Martin as a pension analyst but did not require him to sign either an employment contract or a noncompetition agreement.
    • case117 Ohio St.3d 58Al Minor & Associates, Inc. v. MartinOhiodecided 2008read it at the source ↗
      Show the words that state the rule
      Neither R.C. 1333.61(D) nor any other provision of the UTSA suggests that for purposes of trade secret protection, the General Assembly intended to *62 distinguish between information that has been reduced to some tangible form and information that has been memorized. R.C. 1333.61(D) refers only to “information,” including “any business information or plans, financial information, or listing of names, addresses, or telephone numbers,” and the statute makes no mention of writings or other physical forms that such information might take.
    • case2026-Ohio-2014Chlebina v. Landmark PartnersOhio Ct. App. 9th Dist.decided 2026
      Show the words that state the rule
      “Whether information constitutes a trade secret is a question of fact.” In re Review of Alternative Energy Rider Contained in Tariffs of Ohio Edison Co., 2018-Ohio-229, ¶ 35. “An entity claiming trade secret status bears the burden to identify and demonstrate that the material is included in categories of protected information under the statute . . . .” (Citations and internal quotations omitted.) Garcia v. Matheson, 2024-Ohio-501, ¶ 19 (9th Dist.). “Conclusory statements as to trade secret factors without supporting factual evidence are insufficient to meet the burden of establishing trade secret status.”
  19. read at the 2026-10-03 bar

    Does Oregon's trade secrets act displace a contractual confidentiality obligation?

    The Act does not affect contractual remedies. Except as subsection (2) provides, ORS 646.461 to 646.475 supersede conflicting tort, restitution or other Oregon law providing civil remedies for misappropriation of a trade secret; they do not affect contractual remedies, whether or not based upon misappropriation of a trade secret, other civil remedies not based upon misappropriation of a trade secret, or criminal remedies (ORS 646.473(1)-(2)). A trade secret is information, including a drawing, cost data, customer list, formula, pattern, compilation, program, device, method, technique or process, that 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 is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (646.461(4)). Misappropriation, the word the superseding provision turns on, means acquiring a trade secret by improper means knowingly, or disclosing or using one without consent after acquiring it by improper means or knowing it was acquired by accident or mistake (646.461(2)); improper means includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy and electronic or other espionage, but reverse engineering and independent development alone are not improper means (646.461(1)). The Act's own remedies are an injunction against actual or threatened misappropriation, which must be vacated on application once the trade secret has ceased to exist though it may continue for a reasonable further period to eliminate commercial advantage (646.463(1)), and attorney fees where a misappropriation claim is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or willful or malicious misappropriation is found (646.467).

    The trap

    Information that is not the subject of efforts reasonable under the circumstances to maintain its secrecy is not a trade secret under 646.461(4), so an NDA covering it gets nothing from the Act. That is why the contract matters: an injunction under the Act must be vacated once the information has ceased to be a trade secret (646.463(1)), while a confidentiality covenant stands on its own terms, and the Act leaves contractual remedies unaffected (646.473(2)(a)). Reverse engineering and independent development alone are not improper means, so an NDA that aims at either is doing work the Act does not do (646.461(1)). Nothing quoted here establishes whether a particular confidentiality agreement is enforceable, or for how long, and a bad-faith misappropriation claim can cost the claimant fees (646.467).

    as of 2026-09-17

    6 authorities

    • statuteORS 646.473enactment date not established
      Show the words that state the rule
      Except as provided in subsection (2) of this section, ORS 646.461 to 646.475 supersede conflicting tort, restitution or other law of Oregon providing civil remedies for misappropriation of a trade secret. (2) ORS 646.461 to 646.475 shall not affect: (a) Contractual remedies, whether or not based upon misappropriation of a trade secret; (b) Other civil remedies that are not based upon misappropriation of a trade secret; (c) Criminal remedies, whether or not based upon misappropriation of a trade secret; or (d) Any defense, immunity or limitation of liability afforded public bodies, their officers, employees or agents under ORS 30.260 to 30.300.
    • statuteORS 646.461enactment date not established
      Show the words that state the rule
      “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 and independent development alone shall not be considered improper means.
    • statuteORS 646.461enactment date not established
      Show the words that state the rule
      “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; (b) Disclosure or use of a trade secret of another without express or implied consent by a person who used improper means to acquire knowledge of the trade secret; (c) Disclosure or use of a trade secret of another without express or implied consent by a person who, 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; or
    • statuteORS 646.461enactment date not established
      Show the words that state the rule
      “Trade secret” means information, including a drawing, cost data, customer list, formula, pattern, compilation, program, device, method, technique or process that: (a) 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 (b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteORS 646.463enactment date not established
      Show the words that state the rule
      Actual or threatened misappropriation may be temporarily, preliminarily or permanently enjoined. Upon application to the court, an injunction shall be vacated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.
    • statuteORS 646.467enactment date not established
      Show the words that state the rule
      The court may award reasonable attorney fees to the prevailing party if: (1) A claim of misappropriation is made in bad faith; (2) A motion to terminate an injunction is made or resisted in bad faith; or (3) Willful or malicious misappropriation is found by the court or jury.
  20. read at the 2026-10-03 bar

    Does our confidentiality clause add anything in Rhode Island, and does the Uniform Trade Secrets Act swallow it?

    It adds everything, because the Act expressly saves it while displacing the tort claims around it. R.I. Gen. Laws § 6-41-7 provides that “Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret”, and that “This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret;”. The Supreme Court applied that literally in Wild Horse Concepts, LLC v. Hasbro, Inc.: “The plain and ordinary language of the statute undeniably displaces plaintiffs’ common law claims of fraud, unjust enrichment, deliberate bad faith and wanton, willful bordering on criminal conduct”, and there is nothing underneath it, because “The plaintiffs cannot sidestep the RIUTSA by claiming the information they are seeking to protect is intellectual property and not a trade secret.” The statutory floor is narrow: information is a “Trade secret” only if 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; and” is “the subject of efforts that are reasonable under the circumstances to maintain its secrecy” (§ 6-41-1(4)). Outside that floor the contract is the only source of duty: in Read & Lundy, Inc. v. Washington Trust Co. of Westerly the Court held that “In the absence of an agreement, there does not appear to be any prohibition against the bank’s use of the information supplied by plaintiffs to consider CSI’s loan application.” Rhode Island’s non-compete statute points the same way: a “nondisclosure or confidentiality agreement” is expressly excluded from the definition of a “noncompetition agreement” (§ 28-59-2(8)(vi)), and § 28-59-3(c) says “Nothing in this section shall preclude an employer from entering into an agreement with an employee not to share any information, including after the employee is no longer employed by the employer, regarding the employer or the employment that is a trade secret.”

    The trap

    The Rhode Island trap is that the NDA’s own machinery, not the Act, decides the case. In Wild Horse the confidentiality agreement required that “[a]ll information intended by the disclosing party to be protected under this Agreement shall be in writing and clearly identified in writing as confidential at the time of disclosure”, or within thirty days after it; the disclosing party designated nothing, and the Court held “The proper method to hold information confidential pursuant to the Agreement was to specify such information; failing to do so does not open the door to a claim for breach of an implied contract”, because “When ‘there is an express contract between the parties referring to a subject matter, there can be no implied contract arising by implication of law governing the same subject matter.’” A designation formality you write into your own NDA is therefore a condition you must meet, and no implied-contract or unjust-enrichment theory survives to cover the gap. Second, the displacement runs the other way too: if the information IS a trade secret, the tort wrapper (fraud, unjust enrichment, conversion, punitive-damages counts) goes with it under § 6-41-7(a), and there is no common-law misappropriation claim in Rhode Island to fall back on. Third, the Act’s own remedies are time-boxed in ways a drafter should not assume away: an injunction “shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation” (§ 6-41-2(a)), and § 6-41-2(b) can substitute money for the injunction altogether: “[i]n exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which the use could have been prohibited”; the claim must be brought “within three (3) years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered” and “a continuing misappropriation constitutes a single claim” (§ 6-41-6, applied in Read & Lundy to bar a claim filed more than three years after a deposition revealed the use); and the Act’s fee provision is not a prevailing-party clause, fees run only where “a claim of misappropriation is made in bad faith”, a motion to terminate an injunction “is made or resisted in bad faith”, or “willful and malicious misappropriation exists” (§ 6-41-4).

    as of 2026-09-20

    18 authorities

    • statuteR.I. Gen. Laws § 6-41-7enactment date not established
      Show the words that state the rule
      Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret.
    • statuteR.I. Gen. Laws § 6-41-7enactment date not established
      Show the words that state the rule
      This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret; (2) Other civil remedies that are not based upon misappropriation of a trade secret; or (3) Criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteR.I. Gen. Laws § 6-41-1enactment date not established
      Show the words that state the rule
      (4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (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; and (ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteR.I. Gen. Laws § 6-41-2enactment date not established
      Show the words that state the rule
      Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.
    • statuteR.I. Gen. Laws § 6-41-6enactment date not established
      Show the words that state the rule
      An action for misappropriation must be brought within three (3) years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim.
    • statuteR.I. Gen. Laws § 6-41-4enactment date not established
      Show the words that state the rule
      If: (a) a claim of misappropriation is made in bad faith; or (b) a motion to terminate an injunction is made or resisted in bad faith; or (c) willful and malicious misappropriation exists, the court may award reasonable attorney’s fees to the prevailing party.
    • statuteR.I. Gen. Laws § 28-59-3enactment date not established
      Show the words that state the rule
      Nothing in this section shall preclude an employer from entering into an agreement with an employee not to share any information, including after the employee is no longer employed by the employer, regarding the employer or the employment that is a trade secret.
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      The plain and ordinary language of the statute undeniably displaces plaintiffs’ common law claims of fraud, unjust enrichment, deliberate bad faith and wanton, willful bordering on criminal conduct.
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      The plaintiffs cannot sidestep the RIUTSA by claiming the information they are seeking to protect is intellectual property and not a trade secret.
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      The proper method to hold information confidential pursuant to the Agreement was to specify such information; failing to do so does not open the door to a claim for breach of an implied contract.
    • case840 A.2d 1099Read & Lundy, Inc. v. Washington Trust Co. of WesterlyR.I.decided 2004read it at the source ↗
      Show the words that state the rule
      In the absence of an agreement, there does not appear to be any prohibition against the bank’s use of the information supplied by plaintiffs to consider CSI’s loan application.
    • statuteR.I. Gen. Laws § 28-59-2enactment date not established
      Show the words that state the rule
      (iv) Noncompetition agreements originating outside of an employment relationship; (v) Forfeiture agreements; (vi) Nondisclosure or confidentiality agreements; (vii) Invention assignment agreements;
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      Paragraph two of the Agreement expressly states that “[a]ll information intended by the disclosing party to be protected under this Agreement shall be in writing and clearly identified in writing as confidential at the time of disclosure or within thirty (30) -8- days thereafter ***.”
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      When “there is an express contract between the parties referring to a subject matter, there can be no implied contract arising by implication of law governing the same subject matter.”
    • statuteR.I. Gen. Laws § 6-41-1enactment date not established
      Show the words that state the rule
      “Misappropriation” means: (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; or (ii) 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.
    • statuteR.I. Gen. Laws § 6-41-2enactment date not established
      Show the words that state the rule
      In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which the use could have been prohibited.
    • case840 A.2d 1099Read & Lundy, Inc. v. Washington Trust Co. of WesterlyR.I.decided 2004read it at the source ↗
      Show the words that state the rule
      In a deposition taken on January 25, 1996, however, more than three years before they filed this suit, a bank officer testified that he had information about R & L in the bank’s loan file for CSI for comparison purposes. Therefore, the plaintiffs were aware as early as January 1996 that the bank was using information about R & L to consider CSI’s loan request, yet they failed to file this suit until June 1999.
    • case286 A.3d 848Wild Horse Concepts, LLC v. Hasbro, Inc.R.I.decided 2023read it at the source ↗
      Show the words that state the rule
      Therefore, this claim must fail as a matter of law. Conclusion For the reasons stated herein, we affirm the judgment of the Superior Court. The papers in this case shall be returned to the Superior Court.
  21. no reading recorded at the 2026-10-03 bar

    Does South Dakota's Uniform Trade Secrets Act displace our contractual confidentiality remedies, and what counts as a protectable trade secret?

    No: the Act displaces only tort and restitutionary remedies for misappropriation, and expressly preserves contractual remedies. SDCL 37-29-7 provides: "(a) Except as provided in subsection (b), this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret." Whether information actually qualifies as a trade secret is a separate, fact-intensive question under SDCL 37-29-1(4): information is a trade secret only if it "[d]erives 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 "[i]s the subject of efforts that are reasonable under the circumstances to maintain its secrecy." DT-Trak Consulting, Inc. v. Kolda shows that generic skill and knowledge an employee develops on the job, and materials that change too often to hold stable value, can fail that test even when a confidentiality agreement labels them proprietary: the court, quoting the employee's own brief with approval, described the protocol notes as having "changed daily[,] if not hourly, were not always customer specific," granted her summary judgment on that count, and concluded of the notes and her accumulated experience that "neither meet the definition of a trade secret enunciated in SDCL 37-29-1(4)(i)."

    The trap

    Labeling information "Confidential Information" or a "trade secret" in the contract does not make it one: DT-Trak confirms that "[t]he existence of a trade secret is a mixed question of law and fact," with the legal threshold question (could this information even qualify under § 37-29-1(4)'s first part) decided independent of the parties' own contractual label, and the remaining factual question (was it actually kept secret) decided separately. An employee's own accumulated skill, experience, and general industry know-how (as opposed to the employer's own compiled proprietary information) is the kind of thing DT-Trak found does not qualify, even where a confidentiality agreement purported to cover it. Because § 37-29-7(b)(1) preserves contractual remedies "whether or not based upon misappropriation of a trade secret," a confidentiality or non-disclosure clause can still be enforced on its own contractual terms even where the specific information at issue turns out not to meet the statutory trade-secret definition, but that contractual claim is a different cause of action from a misappropriation claim under the Act, and DT-Trak's own summary judgment ruling addressed only the statutory misappropriation counts, not a separate contract claim.

    as of 2026-09-21

    7 authorities

    • statuteSDCL § 37-29-7enactment date not established
      Show the words that state the rule
      (a) Except as provided in subsection (b), this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret.
    • statuteSDCL § 37-29-7enactment date not established
      Show the words that state the rule
      (b) This chapter does not affect: (1) Contractual remedies, whether or not based upon misappropriation of a trade secret; (2) Other civil remedies that are not based upon misappropriation of a trade secret; or (3) Criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteSDCL § 37-29-1enactment date not established
      Show the words that state the rule
      (4) "Trade secret," information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (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; and (ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • case979 N.W.2d 304Dt-Trak Consulting, Inc. v. Koldasd-sddecided 2022read it at the source ↗
      Show the words that state the rule
      The “existence of a trade secret is a mixed question of law and fact. The legal question is, ‘whether the information in question could constitute a trade secret under the first part of the definition of trade secret’ under SDCL 37-29-1(4) . . . . The factual inquiry involves the remaining subsections of SDCL 37-29-1(4)(i) and (ii).”
    • case979 N.W.2d 304Dt-Trak Consulting, Inc. v. Koldasd-sddecided 2022read it at the source ↗
      Show the words that state the rule
      we conclude that neither meet the definition of a trade secret enunciated in SDCL 37-29-1(4)(i).
    • case979 N.W.2d 304Dt-Trak Consulting, Inc. v. Koldasd-sddecided 2022read it at the source ↗
      Show the words that state the rule
      the protocol notes, as Kolda emphasizes in her brief, “changed daily[,] if not hourly, were not always customer specific, and are not used by [Kolda] at San Carlos.” For this reason, we conclude that Kolda is entitled to summary judgment as a matter of law on Count 4.
    • case979 N.W.2d 304Dt-Trak Consulting, Inc. v. Koldasd-sddecided 2022read it at the source ↗
      Show the words that state the rule
      it is difficult to conceive how these documents and Kolda’s work experience could be trade secrets or further, how Kolda is using, disclosing, or misappropriating any trade secret
  22. read at the 2026-10-03 bar

    Does the Texas trade secret statute wipe out our confidentiality clause, or does the NDA still do work?

    The NDA still does work: that is the express carve-out. The chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. But it does NOT affect: contractual remedies, whether or not based upon misappropriation of a trade secret; other civil remedies that are not based upon misappropriation of a trade secret; or criminal remedies, whether or not based upon misappropriation. It also does not affect disclosure of public information by a governmental body under Chapter 552, Government Code.

    The trap

    The displacement provision is why a confidentiality clause is not surplusage next to the statute: TUTSA absorbs the common-law tort claims but leaves the contract claim standing, and a contract claim can reach material that never qualified as a trade secret at all. Note this section was AMENDED in 2025 and its subsection (c) was repealed effective 4 December 2025, so pre-2026 commentary on its scope should be re-checked rather than relied on; the published statute text checked here carries the repeal line but not the repealed text, so what (c) said cannot be read from it.

    as of 2026-09-14

    3 authorities

    • statuteTex. Civ. Prac. & Rem. Code § 134A.007enacted 2013-09-01
      Show the words that state the rule
      (a) Except as provided by Subsection (b), this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) contractual remedies, whether or not based upon misappropriation of a trade secret; (2) other civil remedies that are not based upon misappropriation of a trade secret; or (3) criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteTex. Civ. Prac. & Rem. Code § 134A.007enactment date not established
      Show the words that state the rule
      (d) This chapter does not affect the disclosure of public information by a governmental body under Chapter 552 , Government Code.
    • statuteTex. Civ. Prac. & Rem. Code § 134A.007enactment date not established
      Show the words that state the rule
      (c) Repealed by Acts 2025, 89th Leg., 2nd C.S., Ch. 7 (H.B. 16 ), Sec. 12.10(19), eff. December 4, 2025.
  23. read at the 2026-10-03 bar

    Does Utah's trade secrets act displace our NDA or confidentiality claims?

    Not contract claims. The Utah Uniform Trade Secrets Act, except as its own subsection (2) provides, displaces conflicting tort, restitutionary and other Utah law providing civil remedies for misappropriation of a trade secret; subsection (2) leaves untouched contractual remedies, whether or not based upon misappropriation of a trade secret, other civil remedies not based upon misappropriation of a trade secret, and criminal remedies, whether or not based upon misappropriation of a trade secret (§ 13-24-8). A trade secret is information, including a formula, pattern, compilation, program, device, method, technique or process, that derives independent economic value from not being generally known or readily ascertainable by proper means and is the subject of reasonable efforts to maintain its secrecy. Misappropriation means acquiring another's trade secret knowing or having reason to know it was acquired by improper means, or disclosing or using it without consent in the circumstances the Act lists, and improper means includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, and espionage through electronic or other means (§ 13-24-2).

    The trap

    The confidentiality agreement is the claim that survives: a tort claim built on misuse of trade secrets is displaced. Under the Post-Employment Restrictions Act, an employer that tries and fails to enforce a nondisclosure or nonsolicitation clause against an employee owes the employee's costs, attorney fees and actual damages (§ 34-51-301), and on or after May 6, 2026 certain veterinarian nondisclosure clauses are void.

    as of 2026-09-17

    5 authorities

    • statuteUtah Code § 13-24-8enactment date not established
      Show the words that state the rule
      Except as provided in Subsection (2) , this chapter displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. This chapter does not affect: contractual remedies, whether or not based upon misappropriation of a trade secret; other civil remedies that are not based upon misappropriation of a trade secret; or criminal remedies, whether or not based upon misappropriation of a trade secret.
    • statuteUtah Code § 13-24-2enactment date not established
      Show the words that state the rule
      "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: 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 is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
    • statuteUtah Code § 34-51-301enactment date not established
      Show the words that state the rule
      If an employer seeks to enforce a non-compete agreement, healthcare non-compete agreement, nondisclosure clause, or nonsolicitation agreement through arbitration or by filing a civil action and it is determined that the non-compete agreement, healthcare non-compete agreement, nondisclosure clause, or nonsolicitation agreement is unenforceable, the employer is liable for the employee's: costs associated with arbitration; attorney fees and court costs; and actual damages.
    • statuteUtah Code § 34-51-205enactment date not established
      Show the words that state the rule
      On or after May 6, 2026, a person and a veterinarian may not enter into a nondisclosure clause in which the individual agrees to not disclose or discuss the individual's experience working for or with the person. A nondisclosure clause that violates this section is void.
    • statuteUtah Code § 13-24-2enactment date not established
      Show the words that state the rule
      "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: 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 disclosure or use of a trade secret of another without express or implied consent by a person who: used improper means to acquire knowledge of the trade secret; or at the time of disclosure or use, knew or had reason to know that his 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 seeking relief to maintain its secrecy or limit its use; or 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.
  24. read at the 2026-10-03 bar

    Does our confidentiality clause survive Virginia's trade-secrets statute, and what does the statute protect?

    Yes, the clause survives: the Virginia Uniform Trade Secrets Act displaces competing tort remedies but expressly preserves contractual ones. "Except as provided in subsection B of this section, this chapter displaces conflicting tort, restitutionary, and other law of this Commonwealth providing civil remedies for misappropriation of a trade secret", and subsection B says the chapter does not affect "1. Contractual remedies whether or not based upon misappropriation of a trade secret; or 2. Other civil remedies that are not based upon misappropriation of a trade secret; or 3. Criminal remedies, whether or not based upon misappropriation of a trade secret" (Va. Code § 59.1-341). What the Act itself protects is narrower than what a confidentiality clause usually covers: "'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" (§ 59.1-336). The plaintiff carries the burden of proving misappropriation within the meaning of the Act (MicroStrategy Inc. v. Li, where the Supreme Court of Virginia affirmed a holding that it had not been carried: "we hold that the chancellor's factual findings fully support his resolution of all the trade secret misappropriation issues presented in this appeal", and "we will affirm the chancellor's judgment". The Court expressly did NOT reach the other element, saying it "need not address MicroStrategy's remaining assignments of error that involve the Act's other required element, the existence of a trade secret", so MicroStrategy decides nothing about what qualifies as a trade secret), and, in Dionne v. Southeast Foam Converting & Packaging, secrecy is not an absolute standard: "The secrecy need not be absolute; the owner of a trade secret may, without losing protection, disclose it to a licensee, an employee, or a stranger, if the disclosure is made in confidence, express or implied" (Dionne, 240 Va. 297). The Act also defines the wrong it displaces other law for: "misappropriation" is acquisition by one who knows or has reason to know the secret was obtained by improper means, or disclosure or use without consent by one who used improper means, or who knew or had reason to know the knowledge came through improper means, under a duty of secrecy, or by accident or mistake (§ 59.1-336), and "improper means" includes breach or inducement of a breach of a duty to maintain secrecy, which is where the confidentiality clause and the Act meet.

    The trap

    Because § 59.1-341(B)(1) preserves contractual remedies, the confidentiality clause is not surplusage and is often the stronger claim. It can reach "proprietary or confidential information" that fails the statutory two-part definition, where a tort claim for the same conduct would be displaced by subsection A. The related Virginia point is in the non-compete statute: Va. Code § 40.1-28.7:8(H)(1) says nothing in that section limits "Nondisclosure agreements intended to prohibit the taking, misappropriating, threatening to misappropriate, or sharing of certain information to which an employee has access, including trade secrets, as defined in § 59.1-336 , and proprietary or confidential information", so the covenant that survives the § 40.1-28.7:8 bans (on non-competes with a low-wage employee or a health care professional, and on any non-compete where the employer discharged without severance) is the confidentiality covenant, not the non-compete.

    as of 2026-09-20

    14 authorities

    • statuteVa. Code § 59.1-336enactment date not established
      Show the words that state the rule
      "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.
    • statuteVa. Code § 59.1-341enactment date not established
      Show the words that state the rule
      A. Except as provided in subsection B of this section, this chapter displaces conflicting tort, restitutionary, and other law of this Commonwealth providing civil remedies for misappropriation of a trade secret.
    • statuteVa. Code § 59.1-341enactment date not established
      Show the words that state the rule
      B. This chapter does not affect: 1. Contractual remedies whether or not based upon misappropriation of a trade secret; or 2. Other civil remedies that are not based upon misappropriation of a trade secret; or 3. Criminal remedies, whether or not based upon misappropriation of a trade secret.
    • case268 Va. 249MicroStrategy Inc. v. LiVa.decided 2004read it at the source ↗
      Show the words that state the rule
      In this appeal, we consider whether the chancellor erred in holding that the plaintiff failed to meet its burden of proving that the defendants misappropriated certain trade secrets, within the meaning of the Virginia Uniform Trade Secrets Act (the Act), Code §§ 59.1-336 through –343.
    • case240 Va. 297Dionne v. Southeast Foam Converting & Packaging, Inc.Va.decided 1990read it at the source ↗
      Show the words that state the rule
      The secrecy need not be absolute; the owner of a trade secret may, without losing protection, disclose it to a licensee, an employee, or a stranger, if the disclosure is made in confidence, express or implied.
    • statuteVa. Code § 40.1-28.7:8enactment date not established
      Show the words that state the rule
      H. Nothing in this section shall serve to limit the creation or application of: 1. Nondisclosure agreements intended to prohibit the taking, misappropriating, threatening to misappropriate, or sharing of certain information to which an employee has access, including trade secrets, as defined in § 59.1-336 , and proprietary or confidential information; or
    • statuteVa. Code § 59.1-336enactment date not established
      Show the words that state the rule
      "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.
    • statuteVa. Code § 59.1-336enactment date not established
      Show the words that state the rule
      As used in this chapter, which may be cited as the Uniform Trade Secrets Act, unless the context requires otherwise: "Improper means" includes theft, bribery, misrepresentation, use of a computer or computer network without authority, breach of a duty or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
    • case268 Va. 249MicroStrategy Inc. v. Lidecided 2004read it at the source ↗
      Show the words that state the rule
      As we observed in Dionne, "the proponent must bear the burden of proving a trade-secret claim." 240 Va. at 303 n.2, 397 S.E.2d at 113 n.2. This burden does not shift, even when a plaintiff has presented a prima facie case. Therefore, we hold that MicroStrategy, as plaintiff, had the burden of proving by a preponderance of the evidence that the defendants misappropriated MicroStrategy's trade secrets, and that the defendants were not required to prove their product was independently derived.
    • case268 Va. 249MicroStrategy Inc. v. LiVa.decided 2004read it at the source ↗
      Show the words that state the rule
      These findings support the chancellor's conclusion that with regard to the metadata schema, "MicroStrategy failed to establish that the [defendants] misappropriated a trade secret." Therefore, we hold that the chancellor's factual findings fully support his resolution of all the trade secret misappropriation issues presented in this appeal.3 For these reasons, we will affirm the chancellor's judgment. Affirmed.
    • case268 Va. 249MicroStrategy Inc. v. LiVa.decided 2004read it at the source ↗
      Show the words that state the rule
      Based on our holding that MicroStrategy failed to establish one of the two required elements under the Act, that of misappropriation, we need not address MicroStrategy's remaining assignments of error that involve the Act's other required element, the existence of a trade secret.
    • statuteVa. Code § 40.1-28.7:8enactment date not established
      Show the words that state the rule
      B. No employer shall enter into, enforce, or threaten to enforce a covenant not to compete with any low-wage employee or health care professional.
    • statuteVa. Code § 40.1-28.7:8enactment date not established
      Show the words that state the rule
      C. No covenant not to compete between an employer and an employee is enforceable if such employer discharges such employee from employment without providing severance benefits or other monetary payment to such employee, unless such employer discharges such employee for cause.
    • statuteVa. Code § 59.1-343enactment date not established
      Show the words that state the rule
      This chapter shall become effective on July 1, 1986, and shall not apply to misappropriation occurring prior to the effective date. With respect to a continuing misappropriation that began prior to the effective date, the chapter also shall not apply to misappropriation that occurs after the effective date.
  25. read at the 2026-10-03 bar

    Does Washington's trade secrets act wipe out our confidentiality clause, and what can an employee NDA not cover?

    No. The Uniform Trade Secrets Act (chapter 19.108 RCW) displaces conflicting tort, restitutionary and other law of Washington pertaining to civil liability for misappropriation of a trade secret, but does not affect contractual or other civil liability or relief that is not based upon misappropriation of a trade secret (RCW 19.108.900); the Supreme Court has said a contractual provision designed to protect against disclosure is not subject to displacement by the Act (Boeing v. Sierracin). But under RCW 49.44.211 a provision in an agreement between an employer and an employee not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy, is void and unenforceable; the section does not prohibit protecting trade secrets, proprietary information or confidential information that does not involve illegal acts, nor a provision keeping a settlement amount confidential. That section defines its own reach, and the reach is the part a drafter needs: the prohibited provisions "concern conduct that occurs at the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises", and they "include those contained in employment agreements, independent contractor agreements, agreements to pay compensation in exchange for the release of a legal claim, or any other agreement between an employer and an employee". A nondisclosure or nondisparagement provision in any agreement signed by a Washington-resident employee "is governed by Washington law", the section's own provisions "are to be liberally construed to fulfill its remedial purpose", and it is retroactive from June 9, 2022 only to invalidate such provisions in agreements created before that date and agreed to at the outset of or during employment: not in an agreement settling a legal claim (RCW 49.44.211(9)-(11)). What the Act displaces other law FOR is defined in it: "misappropriation" is acquisition by one who knows or has reason to know the secret was obtained by improper means, or disclosure or use without consent by one who used improper means or knew the knowledge came through improper means, under a duty of secrecy, or by accident or mistake, and "improper means" includes "breach or inducement of a breach of a duty to maintain secrecy" (RCW 19.108.010). A complainant recovers actual loss and unjust enrichment, and for wilful and malicious misappropriation exemplary damages up to twice that award (RCW 19.108.030), and where "a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or wilful and malicious misappropriation exists, the court may award reasonable attorney's fees to the prevailing party" (RCW 19.108.040): a fee rule that cuts both ways, since the prevailing party can be the accused. The action must be brought within three years of when the misappropriation was or should have been discovered, and a continuing misappropriation is a single claim (RCW 19.108.060). What the Act protects is also defined: a "trade secret" is information that "[d]erives 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 "[i]s the subject of efforts that are reasonable under the circumstances to maintain its secrecy" (RCW 19.108.010(4)). Information that fails either half is not a trade secret, and then the confidentiality clause is the only thing left standing, which is the practical reason to have one.

    The trap

    An employer that asks for a prohibited nondisclosure or nondisparagement provision violates the section by asking: "[i]t is a violation of this section for an employer to request or require that an employee enter into any agreement provision that is prohibited by this section" (RCW 49.44.211(4)). Trying to enforce one is a separate violation, and "enforce" is drawn wide: "whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply" (subsection (5)), so a reminder letter counts. Discharging or retaliating against the employee for disclosing the conduct is a third (subsection (3)). An employer who violates the section after June 9, 2022 "is liable in a civil cause of action for actual or statutory damages of $10,000, whichever is more, as well as reasonable attorneys' fees and costs" (subsection (7)), and subsection (11) reaches back to invalidate provisions in agreements created before June 9, 2022 that were agreed to at the outset of or during employment. For this section "employee" means a current, former, or prospective employee or independent contractor, so a confidentiality clause copied into a contractor agreement is within the section.

    as of 2026-09-16

    7 authorities

    • statuteRCW 19.108.900enactment date not established
      Show the words that state the rule
      (1) This chapter displaces conflicting tort, restitutionary, and other law of this state pertaining to civil liability for misappropriation of a trade secret. (2) This chapter does not affect: (a) Contractual or other civil liability or relief that is not based upon misappropriation of a trade secret; or (b) Criminal liability for misappropriation of a trade secret. [ 1981 c 286 s 7.]
    • case108 Wash. 2d 38Boeing Co. v. Sierracin Corp.Wash.decided 1987read it at the source ↗
      Show the words that state the rule
      Sierracin argues that the trial court erred by not consolidating all of these claims into one for misappropriation under the Uniform Trade Secrets Act, RCW 19.108. We reject this argument. RCW 19.108.900 specifically provides, in part: (1) This chapter displaces conflicting tort, restitutionary, and other law of this state pertaining to civil liability for misappropriation of a trade secret. (2) This chapter does not affect: (a) Contractual or other civil liability or relief that is not based upon misappropriation of a trade secret. . . See also Proceedings in Committee of the Whole, Uniform Trade Secrets Act of the National Conference of Commissioners on Uniform State Laws, at 6 (Aug. 3, 1978). The act merely displaces conflicting tort, restitutionary and other law regarding civil liability for misappropriation. The United States Supreme Court has held that proof of trade secrets is not required for breach of confidentiality claims, which may be brought independently of trade secrets claims. E.I. Du Pont De Nemours Powder Co. v. Masland, 244 U.S. 100, 102 , 61 L. Ed. 1016 , 37 S. Ct. 575 (1917); Monolith Portland Midwest Co. v. Kaiser Aluminum & Chem. Corp., 407 F.2d 288, 293 (9th Cir. 1969). A confidential relationship alone is enough to prohibit disclosure. Island Air, Inc. v. LaBar, 18 Wn. App. 129, 138-39 , 566 P.2d 972 (1977). Furthermore, a contractual provision designed to protect against disclosure would also not be subject to displacement by the Uniform Trade Secrets Act. RCW 19.108.900(2)(a). The Committee specifically dealt with this question and decided as follows: (1) Should the Act cover contract liability as well as tort liability? The answer then was: No. It is the judgement of the Committee that the answer still should be no, and that the Act limit itself to the tort situation. Report of Proceedings, at 6. The trial court did not err in refusing to consolidate Boeing's claims.
    • statuteRCW 49.44.211enactment date not established
      Show the words that state the rule
      (1) A provision in an agreement by an employer and an employee not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy, is void and unenforceable. Prohibited nondisclosure and nondisparagement provisions in agreements concern conduct that occurs at the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises. Prohibited nondisclosure and nondisparagement provisions include those contained in employment agreements, independent contractor agreements, agreements to pay compensation in exchange for the release of a legal claim, or any other agreement between an employer and an employee. (2) This section does not prohibit the enforcement of a provision in any agreement that prohibits the disclosure of the amount paid in settlement of a claim. (3) It is a violation of this section for an employer to discharge or otherwise discriminate or retaliate against an employee for disclosing or discussing conduct that the employee reasonably believed to be illegal harassment, illegal discrimination, illegal retaliation, wage and hour violations, or sexual assault, that is recognized as illegal under state, federal, or common law, or that is recognized as against a clear mandate of public policy, occurring in the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises. (4) It is a violation of this section for an employer to request or require that an employee enter into any agreement provision that is prohibited by this section. (5) It is a violation of this section for an employer to attempt to enforce a provision of an agreement prohibited by this section, whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply with a provision in any agreement that is prohibited by this section. (6) This section does not prohibit an employer and an employee from protecting trade secrets, proprietary information, or confidential information that does not involve illegal acts. (7) An employer who violates this section after June 9, 2022, is liable in a civil cause of action for actual or statutory damages of $10,000, whichever is more, as well as reasonable attorneys' fees and costs. (8) For the purposes of this section, "employee" means a current, former, or prospective employee or independent contractor. (9) A nondisclosure or nondisparagement provision in any agreement signed by an employee who is a Washington resident is governed by Washington law. (10) The provisions of this section are to be liberally construed to fulfill its remedial purpose. (11) As an exercise of the state's police powers and for remedial purposes, this section is retroactive from June 9, 2022, only to invalidate nondisclosure or nondisparagement provisions in agreements created before June 9, 2022, and which were agreed to at the outset of employment or during the course of employment. This subsection allows the recovery of damages only to prevent the enforcement of those provisions. This subsection does not apply to a nondisclosure or nondisparagement provision contained in an agreement to settle a legal claim. [ 2022 c 133 s 2.]
    • statuteRCW 19.108.010enactment date not established
      Show the words that state the rule
      Unless the context clearly requires otherwise, the definitions set forth in this section apply throughout this chapter. (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. [ 1981 c 286 s 1.]
    • statuteRCW 19.108.030enactment date not established
      Show the words that state the rule
      (1) In addition to or in lieu of injunctive relief, a complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss. (2) If wilful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (1). [ 1981 c 286 s 3.]
    • statuteRCW 19.108.040enactment date not established
      Show the words that state the rule
      If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or wilful and malicious misappropriation exists, the court may award reasonable attorney's fees to the prevailing party. [ 1981 c 286 s 4.]
    • statuteRCW 19.108.060enactment date not established
      Show the words that state the rule
      An action for misappropriation must be brought within three years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim. [ 1981 c 286 s 6.]
  26. read at the 2026-10-03 bar

    If the information our NDA protects is not a trade secret, is there anything left to sue on?

    Yes, in Wisconsin. The Supreme Court of Wisconsin held in Burbank Grease that Wis. Stat. § 134.90(6)(a) does not preclude all other civil remedies based on the misappropriation of confidential information where the information does not meet the statutory definition of a trade secret under § 134.90(1)(c), and that § 134.90(6)(b)2 permits civil tort remedies based on the misappropriation of that other confidential information. The subsection the court construed says that, except as provided in par. (b), § 134.90 displaces conflicting tort law, restitutionary law and any other law of this state providing a civil remedy for misappropriation of a trade secret, while par. (b) preserves any contractual remedy whether or not based on misappropriation of a trade secret, any civil remedy not based on misappropriation of a trade secret, and any criminal remedy. Because the plaintiff's complaint stated other common-law claims and material facts relevant to them were disputed, dismissing the complaint was error; the court affirmed in part, reversed in part and remanded.

    The trap

    Wisconsin's reading is narrower than the displacement rule some courts have drawn from the Uniform Trade Secrets Act, but it is not an outlier: reviewing the out-of-state decisions urged against it, the court found that only a few of them supported displacing all claims over information outside the definition, and it identified a class of decisions holding that the Act does not abrogate such claims, the class it said this case would easily fit. Nor does the Act's own uniformity direction in § 134.90(7) change the answer, because on the court's reading that subsection reaches only the misappropriation of a statutorily defined trade secret. So a confidentiality clause drafted on the assumption that everything outside the statutory definition is unprotected understates what a Wisconsin plaintiff can plead, and a defendant who wins the trade-secret point has not won the case. Burbank Grease decided a second question the other way in the same opinion: Wis. Stat. § 943.70(2) does not apply when an individual lawfully obtains computer-stored confidential information and later misappropriates it, so the computer-crime route was properly dismissed. Section 134.90 is not in the Wisconsin statutes available for this research, but the definition is reachable through the law we hold: the Supreme Court of Wisconsin set § 134.90(1)(c) out in North Highland. A trade secret is information, including a formula, pattern, compilation, program, device, method, technique or process, that derives independent economic value, actual or potential, from not being generally known to and not readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and that is the subject of efforts to maintain its secrecy that are reasonable under the circumstances. The court set those words out while holding it need not decide whether the information in front of it qualified, so what counts as reasonable secrecy efforts on any given facts is not settled here.

    as of 2026-09-17

    9 authorities

    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      We conclude that § 134.90(6)(a) does not preclude all other civil remedies based on the misappropriation of confidential information, if the information does not meet the statutory definition of a trade secret under § 134.90(l)(c). Accordingly, in the case before us, § 134.90(6)(b)2 permits civil tort remedies based on the misappropriation of confidential information.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      However, we also conclude that § 943.70(2) does not apply when an individual lawfully obtains computer-stored confidential information, but later misappropriates it.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      Therefore, because the plaintiffs complaint stated other common law claims and because material facts relevant to those claims are disputed, it was error to dismiss the complaint.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      Accordingly, the plaintiffs § 943.70(2) claim was properly dismissed on summary judgment. Accordingly, we affirm in part; reverse in part and remand to the circuit court for further proceedings.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      Wisconsin Stat. § 134.90(6) states: Effect on other laws, (a) Except as provided in par. (b), this section displaces conflicting tort law, restitu-tionary law and any other law of this state providing a civil remedy for misappropriation of a trade secret. (b) This section does not affect any of the following: 1. Any contractual remedy, whether or not based upon misappropriation of a trade secret.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      The plain language of subsec. (7) relates only to the "misappropriation of trade secrets," which, according to our analysis of subd. (6)(b)2 and the plain meaning of subsec. (7) , requires a statutorily-defined trade secret as a prerequisite. Our construction in this regard is in accord with the promotion of uniformity by subsec. (7), because the statutory definition of a trade secret is made uniform throughout the states enacting a version of the Uniform Trade Secrets Act (UTSA), and our application of that definition has been in accord with other UTSA jurisdictions.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      We recognize that Wis. Stat. ,§ 134.90 is derived from the UTSA; that 44 states have adopted some version of the UTSA; and that those states' interpretations of similar statutes may serve as useful extrinsic sources to assist in statutory construction, if required. However, as explained above, we conclude that the legislative history of Wisconsin's enactment of *295 the UTSA is more persuasive because it affirms the plain meaning of § 134.90(6)(b)2. ¶ 32. Furthermore, even if we were to employ cases from other jurisdictions as extrinsic sources for the interpretation of Wis. Stat. § 134.90 , we conclude that they do not support the conclusion that all of Burbank's tort claims based on the misappropriation of confidential information have been abrogated. 8 Our review of the cited cases shows that only a few of them support the conclusion of the court of appeals.
    • case2006 WI 103Burbank Grease Services, LLC v. SokolowskiWis.decided 2006read it at the source ↗
      Show the words that state the rule
      But rather, after a review of all of those cited decisions, we determine that three categories of cases emerge: (1) when the claims are based only on the misuse of confidential information that fits the statutory definition of a trade secret, a claim under the UTSA is the only tort claim available; 10 (2) when the claims are *296 based on the misuse of confidential information that does not meet the statutory definition of a trade secret, the UTSA does not abrogate those claims; 11 and (3) when the claims are based on misuse of confidential information, some of which meet the statutory definition of a trade secret and some of which do not, the UTSA abrogates claims only to the extent that they are based on a trade secret; separate claims based on other factual allegations survive. 12 These classes of cases are *297 helpful and Burbank could easily fit within those cases comprising the second class.
    • case2017 WI 75North Highland Inc. v. Jefferson Machine & Tool Inc.Wis.decided 2017read it at the source ↗
      Show the words that state the rule
      Pursuant to Wis. Stat. § 134.90 (l)(c), a trade secret is defined as a specific type of information: "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique or process to which all of the following apply: 1. The information derives independent economic value, actual or potential, from not being *514 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. The information is the subject of efforts to maintain its secrecy that are reasonable under the circumstances.