1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Texas Uniform Trade Secrets Act: Part 3 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.

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 were:

(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 the measures taken 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 in developing the information;  and

(6) the ease or difficulty with which the information could be properly acquired or  duplicated by others.

So then, what is the new definition of a trade secret under the Texas Uniform Trade Secrets Act?

TUTSA’s Expansive New Definition of a Trade Secret under §134A.002(6) is as follows:

Trade Secret: “information, including a formula, pattern, compilation, program, device, method, technique, process, financial data, or list of actual or potential customers or suppliers, 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.

[Continued Next Week in Part 4]

“Business Law Information You Can Use…Really.”

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Armstrong The Law Firm, P.C.
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1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297