Texas Considers Adopting the Uniform Trade Secrets Act

Texas, New York, North Carolina, and Massachusetts are the only states that do not subscribe to some version of the Uniform Trade Secrets Act (“UTSA”).

Common law presently governs misappropriation of trade secrets lawsuits in Texas.

Legislation was recently proposed that, if enacted, would adopt a version of the UTSA for the State of Texas. The common law of Texas is very similar to the UTSA in many ways.

The biggest change that adoption of the UTSA could bring about has to do with the recovery of attorneys’ fees. There is currently no basis for recovery of attorneys’ fees in Texas for the misappropriation of trade secrets, absent a separate cause of action (such as breach of a confidentiality agreement or recovery under the Texas Theft Liability Act (“TTLA”)).

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