This chapter may be cited as the
Uniform Trade Secrets Act.
(Added to NRS by 1987, 19)
As used in this chapter, unless the
context otherwise requires:
1. “Improper means” includes, without limitation:
(a) Theft;
(b) Bribery;
(c) Misrepresentation;
(d) Willful breach or willful inducement of a breach of a duty to
maintain secrecy;
(e) Willful breach or willful inducement of a breach of a duty
imposed by common law, statute, contract, license, protective order or
other court or administrative order; and
(f) Espionage through electronic or other means.
2. “Misappropriation” means:
(a) Acquisition of the trade secret of another by a person by
improper means;
(b) Acquisition of a trade secret of another by a person who knows
or has reason to know that the trade secret was acquired by improper
means; or
(c) Disclosure or use of a trade secret of another without express
or implied consent by a person who:
(1) Used improper means to acquire knowledge of the trade
secret;
(2) At the time of disclosure or use, knew or had reason to
know that his knowledge of the trade secret was:
(I) Derived from or through a person who had used
improper means to acquire it;
(II) Acquired under circumstances giving rise to a
duty to maintain its secrecy or limit its use; or
(III) Derived from or through a person who owed a duty
to the person seeking relief to maintain its secrecy or limit its use; or
(3) Before a material change of his position, knew or had
reason to know that it was a trade secret and that knowledge of it had
been acquired by accident or mistake.
3. “Owner” means the person who holds legal or equitable title to
a trade secret.
4. “Person” means a natural person, corporation, business trust,
estate, trust, partnership, association, joint venture, government,
governmental subdivision or agency, or any other legal or commercial
entity.
5. “Trade secret” means information, including, without
limitation, a formula, pattern, compilation, program, device, method,
technique, product, system, process, design, prototype, procedure,
computer programming instruction or code that:
(a) Derives independent economic value, actual or potential, from
not being generally known to, and not being readily ascertainable by
proper means by the public or any other persons who can obtain commercial
or economic value from its disclosure or use; and
(b) Is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy.
(Added to NRS by 1987, 20; A 1993, 2802; 1999, 2101 )
The owner of a trade secret is
presumed to make a reasonable effort to maintain its secrecy if the word
“Confidential” or “Private” or another indication of secrecy is placed in
a reasonably noticeable manner on any medium or container that describes
or includes any portion of the trade secret. This presumption may be
rebutted only by clear and convincing evidence that the owner did not
take reasonable efforts to maintain the secrecy of the trade secret.
(Added to NRS by 2001, 942 )
A person who, with intent to injure an owner of a trade
secret or with reason to believe that his actions will injure an owner of
a trade secret, without limitation:
1. Steals, misappropriates, takes or conceals a trade secret or
obtains a trade secret through fraud, artifice or deception;
2. Wrongfully copies, duplicates, sketches, draws, photographs,
alters, destroys, photocopies, replicates, transmits, delivers, sends,
mails, communicates or conveys a trade secret;
3. Receives, buys or possesses a trade secret with knowledge or
reason to know that the trade secret was obtained as described in
subsection 1 or 2;
4. Attempts to commit an offense described in subsection 1, 2 or 3;
5. Solicits another person to commit an offense described in
subsection 1, 2 or 3; or
6. Conspires to commit an offense described in subsection 1, 2 or
3, and one of the conspirators performs an act to further the conspiracy,
Ê is guilty of a category C felony and shall be punished by imprisonment
in the state prison for a minimum term of not less than 1 year and a
maximum term of not more than 10 years and may be further punished by a
fine of not more than $10,000.
(Added to NRS by 1999, 2100 )
1. Actual or threatened misappropriation may be enjoined. Upon
application to the court, an injunction must be terminated when the trade
secret has ceased to exist, but the injunction may be continued for an
additional reasonable period of time to eliminate commercial or other
advantage that otherwise would be derived from the misappropriation.
2. In exceptional circumstances, an injunction may condition
future use upon payment of a reasonable royalty for no longer than the
period of time for which use could have been prohibited. Exceptional
circumstances include a material and prejudicial change of position
before acquiring knowledge or reason to know of misappropriation that
renders a prohibitive injunction inequitable.
3. In appropriate circumstances, the court may order affirmative
acts to protect a trade secret. As used in this subsection, “affirmative
acts” includes, without limitation, issuing an injunction or order
requiring that a trade secret which has been misappropriated and posted,
displayed or otherwise disseminated on the Internet be removed from the
Internet immediately.
(Added to NRS by 1987, 20; A 1999, 2102 ; 2001, 406 )
1. Except to the extent that a material and prejudicial change of
position before acquiring knowledge or reason to know of misappropriation
renders a monetary recovery inequitable, a complainant is entitled to
recover damages for misappropriation. Damages include both loss caused by
misappropriation and unjust enrichment caused by misappropriation that is
not taken into account in computing the loss. In lieu of damages measured
by any other methods, damages caused by misappropriation may be measured
by imposition of liability for a reasonable royalty for a
misappropriator’s unauthorized disclosure or use of a trade secret.
2. If willful, wanton or reckless misappropriation or disregard of
the rights of the owner of the trade secret exists, the court may award
exemplary damages in an amount not exceeding twice the award made under
subsection 1.
(Added to NRS by 1987, 20; A 1999, 2102 )
A trade secret that is misappropriated and posted,
displayed or otherwise disseminated on the Internet shall be deemed to
remain a trade secret as defined in NRS 600A.030 and not to have “ceased to exist” for the
purposes of subsection 1 of NRS 600A.040 if:
1. The owner, within a reasonable time after discovering that the
trade secret has been misappropriated and posted, displayed or otherwise
disseminated on the Internet, obtains an injunction or order issued by a
court requiring that the trade secret be removed from the Internet; and
2. The trade secret is removed from the Internet within a
reasonable time after the injunction or order requiring removal of the
trade secret is issued by the court.
(Added to NRS by 2001, 406 )
If:
1. A claim of misappropriation is made in bad faith;
2. A motion to terminate an injunction is made or resisted in bad
faith; or
3. Willful and malicious misappropriation exists,
Ê the court may award reasonable attorney’s fees to the prevailing party.
(Added to NRS by 1987, 21)
In any civil or criminal
action, the court shall preserve the secrecy of an alleged trade secret
by reasonable means, which may include, without limitation:
1. Granting protective orders in connection with discovery
proceedings;
2. Holding hearings in camera;
3. Sealing the records of the action;
4. Determining the need for any information related to the trade
secret before allowing discovery;
5. Allowing the owner of the trade secret to obtain a signed
agreement of confidentiality from any party who obtains knowledge of the
trade secret;
6. Ordering a person who obtains knowledge of the trade secret to
return to the owner of the trade secret any writing which reflects or
contains the trade secret; and
7. Ordering any person involved in the litigation not to disclose
an alleged trade secret without previous court approval.
(Added to NRS by 1987, 21; A 1999, 2102 )
An action for
misappropriation must be brought within 3 years after the
misappropriation is discovered or by the exercise of reasonable diligence
should have been discovered. For the purposes of this section, a
continuing misappropriation constitutes a single claim.
(Added to NRS by 1987, 21)
1. Except as otherwise provided in subsection 2, this chapter
displaces conflicting tort, restitutionary, and other law of this state
providing civil remedies for misappropriation of a trade secret.
2. This chapter does not affect:
(a) Contractual remedies, whether or not based upon
misappropriation of a trade secret;
(b) Other civil remedies that are not based upon misappropriation
of a trade secret; or
(c) Except as otherwise provided in NRS 600A.035 , criminal sanctions, whether or not based
upon misappropriation of a trade secret.
(Added to NRS by 1987, 21; A 1999, 2103 )
This chapter
does not apply to a misappropriation that occurred before July 1, 1987,
or to a misappropriation that began before and continues after July 1,
1987.
(Added to NRS by 1987, 21)
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