1400 Gables Ct #103 Plano, TX 75075
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Texas Uniform Trade Secrets Act: Part 2 in a Series

The following is the second in a series of articles  published by  Plano Business Litigator  Ric Armstrong, based on a speech he made to the North Dallas Bar Association.

Texas was the 47th state to adopt the new uniform law. This has advantages and disadvantages. While the statute provides a more predictable framework within which to litigate cases involving trade secrets and confidential information that its common law predecessor, the fact that we waited so long to adopt it means that there are no Texas cases to look at to construe what the statute means. This can be good if you want to rely on the plain meaning of the statutory language, but bad if the language is vague or outright absent. In that  scenario, you will need to go to the jurisprudence other states who adopted the Uniform Act before Texas. That is a good thing, because, having waited so long, Texas now has a body of case law of 46 jurisdictions to look to instead of reinventing the wheel all by itself.

THE PRE-TUTSA BODY OF LAW  was formed by  (1) Texas common law- over 100 years of case-by-case decision-making  based on varying factual scenarios; (2) §757 the Restatement of Torts (1939); (3) §39 of the Restatement (Third) of Unfair Competition and its Comments; and (4) the Texas Theft Liability Act.

So, what was the criticism and the impetus for change in the Texas body of law  governing trade secrets? At the risk of oversimplifying,  I will put it this way: No one dreamed of electronically stored data and the internet in 1939. The factors developed under the Restatement of Unfair Competition were, therefore, long outdated. What are the “factors” I am referring to? The factors utilized by the framers of the Restatement (of Unfair Competition) in deciding whether something was worthy of protection as a trade secret will be set out and discussed in Part 3, coming soon.

Plano Business Litigation Lawyers at armstronglawfirm.devstagingserver.com successfully prosecute and defend  noncompete covenants suitstrade secret misappropriation disputes, and unfair competition litigation.  Attorneys at Armstrong The Law Firm, P.C. are experienced in representing clients successfully through the Texas state and federal courts. Call 972-424-L-A-W-S (5297) or visit www.PlanoBusinessLawFirm.com .

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