What Qualifies as a Trade Secret in Texas?
A trade secret is information that has independent economic value because it is not generally known, and that the owner takes reasonable steps to keep secret. Examples include:
- Customer lists and pricing data
- Source code and software
- Manufacturing processes and formulas
- Research and development data
- Business plans, bids and vendor terms
How Trade Secret Theft Happens
- Departing employees downloading files or emailing data
- Partners using shared information for a competing venture
- Competitors hiring away employees to obtain know-how
- Unauthorized system access
- Vendors or contractors misusing confidential data
Theft is often hard to detect until damage is done.
Texas Uniform Trade Secrets Act Protection
Texas adopted the Texas Uniform Trade Secrets Act (TUTSA) in 2013. It provides:
- Temporary restraining orders and injunctions to stop actual or threatened misappropriation
- Actual damages and disgorgement of unjust gains
- Exemplary damages up to twice actual damages for willful and malicious misappropriation
- Attorney's fees for willful and malicious misappropriation or bad-faith claims
The federal Defend Trade Secrets Act offers a parallel claim in federal court.
Defending Against Trade Secret Claims
Businesses that hire employees from competitors are sometimes accused of misappropriation. We help companies respond quickly, investigate what information new hires brought, put safeguards in place and defend against overbroad claims and injunction requests.
Non-Compete Agreements in Trade Secret Cases
Trade secret claims often pair with non-compete agreement enforcement and confidentiality agreement claims, giving businesses more than one path to relief.
How AbsolutLAW Handles Trade Secret Litigation
We identify what was taken and how, work with digital forensics experts, seek emergency injunctions, and quantify harm with technical and financial experts. We litigate in state courts across Dallas-Fort Worth and in the Northern, Southern and Western Districts of Texas. Schedule a free consultation or call 214-935-1628.
Trade Secret Disputes: Frequently Asked Questions
What should I do immediately after discovering trade secret theft?
Preserve all evidence without altering devices, document what was taken and who had access, and contact a business litigation attorney about emergency relief.
How long do I have to sue for trade secret misappropriation in Texas?
Generally three years from when the misappropriation was discovered or reasonably should have been discovered.
Is a customer list a trade secret?
It can be, if it is not publicly available, has value and the business took reasonable steps to protect it.
Can I get an injunction against a former employee?
Yes. Texas courts can issue temporary restraining orders and injunctions to stop use or disclosure of trade secrets.
Should I sue in state or federal court?
It depends on the facts, parties and urgency. TUTSA claims proceed in state court, while the DTSA allows federal court.