Texas Changes Law To Strengthen The Ability Of Companies To Protect Their Information

Until recently, Texas common law governed misappropriation of trade secrets lawsuits in Texas. That changed when he 2013 Texas legislature adopted a version of the Uniform Trade Secrets Act (“UTSA”). The new act is known as the Texas Uniform Trade Secrets Act (“TUTSA”). New York and Massachusetts are now the only two states to not adopt some form or variation of the UTSA.

Trade secret laws protect companies from having their confidential information stolen and used by competitors. The most common way information is taken by a competitor is when an employee leaves one company and takes significant information, either in hard-copy or saved electronically, to the competitor. The confidential information taken may include items like customer lists, financial data, proprietary information about new projects, sales and marketing strategies and the like. Trade secret laws generally protect any formula, pattern, device, or compilation of information used in the company’s trade or business that gives the company a competitive advantage over those who do not know or use it and that is in fact a secret.

To read this blog post click here