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UniformTradeSecretsAct(DraftedbytheNationalConferenceofCommissionersonUniformStateLaws,asamended1985)§1.
DefinitionsAsusedinthisAct,unlessthecontextrequiresotherwise:(1)"Impropermeans"includestheft,bribery,misrepresentation,breachorinducementofabreachofdutytomaintainsecrecy,orespionagethroughelectronicorothermeans.
(2)"Misappropriation"means:(i)acquisitionofatradesecretofanotherbyapersonwhoknowsorhasreasontoknowthatthetradesecretwasacquiredbyimpropermeans;or(ii)disclosureoruseofatradesecretofanotherwithoutexpressorimpliedconsentbyapersonwho(A)usedimpropermeanstoacquireknowledgeofthetradesecret;or(B)atthetimeofdisclosureorusekneworhadreasontoknowthathisknowledgeofthetradesecretwas(I)derivedfromorthroughapersonwhohasutilizedimpropermeanstoacquireit;(II)acquiredundercircumstancesgivingrisetoadutytomaintainitssecrecyorlimititsuse;or(III)derivedfromorthroughapersonwhoowedadutytothepersonseekingrelieftomaintainitssecrecyorlimititsuse;or(C)beforeamaterialchangeofhisposition,kneworhadreasontoknowthatitwasatradesecretadthatknowledgeofithadbeenacquiredbyaccidentormistake.
(3)"Person"meansanaturalperson,corporation,businesstrust,estate,trust,partnership,association,jointventure,government,governmentalsubdivisionoragency,oranyotherlegalorcommercialentity.
(4)"Tradesecret"meansinformation,includingaformula,pattern,compilation,programdevice,method,technique,orprocess,that:(i)derivesindependenteconomicvalue,actualorpotential,fromnobeinggenerallyknownto,andnotbeingreadilyascertainablebypropermeansby,otherpersonswhocanobtaineconomicvaluefromitsdisclosureoruse,and(ii)isthesubjectofeffortsthatarereasonableunderthecircumstancestomaintainitssecrecy.
§2.
InjunctiveRelief(a)Actualorthreatenedmisappropriationmaybeenjoined.
Uponapplicationtothecourtaninjunctionshallbeterminatedwhenthetradesecrethasceasedtoexist,buttheinjunctionmaybecontinuedforanadditionalreasonableperiodoftimeinordertoeliminatecommercialadvantagethatotherwisewouldbederivedfromthemisappropriation.
(b)Inexceptionalcircumstances,aninjunctionmayconditionfutureuseuponpaymentofareasonableroyaltyfornolongerthantheperiodoftimeforwhichusecouldhavebeenprohibited.
Exceptionalcircumstancesinclude,butarenotlimitedto,amaterialandprejudicialchangeofpositionpriortoacquiringknowledgeorreasontoknowofmisappropriationthatrendersaprohibitiveinjunctioninequitable.
(c)Inappropriatecircumstances,affirmativeactstoprotectatradesecretmaybecompelledbycourtorder.
§3.
Damages(a)Excepttotheextentthatamaterialandprejudicialchangeofpositionpriortoacquiringknowledgeorreasontoknowofmisappropriationrendersamonetaryrecoveryinequitable,acomplainantisentitledtorecoverdamagesformisappropriation.
DamagescanincludeboththeactuallosscausedbyPage1of3UniformTradeSecretsAct9/16/2007http://www.
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htmmisappropriationandtheunjustenrichmentcausedbymisappropriationthatisnottakenintoaccountincomputingactualloss.
Inlieuofdamagesmeasuredbyanyothermethods,thedamagescausedbymisappropriationmaybemeasuredbyimpositionofliabilityforareasonableroyaltyforamisappropriator'sunauthorizeddisclosureoruseofatradesecret.
(b)Ifwillfulandmaliciousmisappropriationexists,thecourtmayawardexemplarydamagesintheamountnotexceedingtwiceanyawardmadeundersubsection(a).
§4.
Attorney'sFeesIf(i)aclaimofmisappropriationismadeinbadfaith,(ii)amotiontoterminateaninjunctionismadeorresistedinbadfaith,or(iii)willfulandmaliciousmisappropriationexists,thecourtmayawardreasonableattorney'sfeestotheprevailingparty.
§5.
PreservationofSecrecyInactionunderthisAct,acourtshallpreservethesecrecyofanallegedtradesecretbyreasonablemeans,whichmayincludegrantingprotectiveordersinconnectionwithdiscoveryproceedings,holdingin-camerahearings,sealingtherecordsoftheaction,andorderinganypersoninvolvedinthelitigationnottodiscloseanallegedtradesecretwithoutpriorcourtapproval.
§6.
StatuteofLimitationsAnactionformisappropriationmustbebroughtwithin3yearsafterthemisappropriationisdiscoveredorbytheexerciseofreasonablediligenceshouldhavebeendiscovered.
Forthepurposesofthissection,acontinuingmisappropriationconstitutesasingleclaim.
§7.
EffectonOtherLaw(a)Exceptasprovidedinsubsection(b),this[Act]displacesconflictingtort,restitutionary,andotherlawofthisStateprovidingcivilremediesformisappropriationofatradesecret.
(b)This[Act]doesnotaffect:(1)contractualremedies,whetherornotbaseduponmisappropriationofatradesecret;or(2)othercivilremediesthatarenotbaseduponmisappropriationofatradesecret;or(3)criminalremedies,whetherornotbaseduponmisappropriationofatradesecret.
§8.
UniformityofApplicationandConstructionThisactshallbeappliedandconstruedtoeffectuateitsgeneralpurposetomakeuniformthelawwithrespecttothesubjectofthisActamongstatesenactingit.
§9.
ShortTitleThisActmaybecitedastheUniformTradeSecretsAct.
§10.
SeverabilityIfanyprovisionofthisActoritsapplicationtoanypersonorcircumstancesisheldinvalid,theinvaliditydoesnotaffectotherprovisionsorapplicationsoftheActwhichcanbegiveneffectwithouttheinvalidprovisionorapplication,andtothisendtheprovisionsofthisActareseverable.
Page2of3UniformTradeSecretsAct9/16/2007http://www.
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TimeofTakingEffectThis[Act]takeseffectonanddoesnotapplytomisappropriationoccurringpriortotheeffectivedate.
Withrespecttoacontinuingmisappropriationthatbeganpriortotheeffectivedate,the[Act]alsodoesnotapplytothecontinuingmisappropriationthatoccursaftertheeffectivedate.
§12.
RepealThefollowingActsandpartsofActsarerepealed*****:BACKTOHOMEPAGEPage3of3UniformTradeSecretsAct9/16/2007http://www.
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