What Is a Trade Secret?

A trade secret is all forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing, if the owner has taken reasonable measures under the circumstances to keep the information secret, and the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information (Tex. Civ. Prac. & Rem. Code § 134A.002(6); 18 U.S.C. § 1839(3)).

Information qualifies only if it meets both parts of that test: value from secrecy, and reasonable measures to keep it secret. The Texas Uniform Trade Secrets Act governs misappropriation claims (Tex. Civ. Prac. & Rem. Code §§ 134A.002, 134A.003(a)).

Pinpoint: Tex. Civ. Prac. & Rem. Code § 134A.002(6); 18 U.S.C. § 1839(3). Related term: Trade Secret.

Sources.

• Tex. Civ. Prac. & Rem. Code ch. 134A: Texas Uniform Trade Secrets Act, including the definition of trade secret (§ 134A.002(6)). statutes.capitol.texas.gov
• 18 U.S.C. § 1839(3): definition of trade secret under the Defend Trade Secrets Act. law.cornell.edu

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