Theft of Trade Secrets
The Texas Uniform Trade Secrets Act (“TUTSA”) was enacted in Texas in 2013. Information subject to protection under TUTSA includes not only technical data like formulas, designs, and prototypes, but also business information like marketing strategies and actual and potential customer lists. Generally, the party seeking to protect the information must show that it made a reasonable effort to keep the information secret, and that the information has actual or potential value to third parties because it is not generally known or readily ascertainable through proper means. Under TUTSA, a court can grant a prohibitive injunction (for example, a temporary restraining order) for actual or threatened misappropriation. A prevailing plaintiff may also be able to recover its attorney’s fees if the defendant willfully and maliciously misappropriates a trade secret by consciously disregarding the rights of the trade secret’s owner. TUTSA claims are often raised as part of non-compete litigation involving former employees and in business divorce cases.
The attorneys at Gilstrap Law Group have represented plaintiffs and defendants in numerous TUTSA claims since the legislation was enacted in 2013. For example, see Sci. Mach. & Welding, Inc. v. Rose, 2022 Tex. App. LEXIS 1884.