2005 Nevada Revised Statutes - Chapter 600A — Trade Secrets (Uniform Act)

CHAPTER 600A - TRADE SECRETS (UNIFORM ACT)

NRS 600A.010 Shorttitle.

NRS 600A.030 Definitions.

NRS 600A.032 Presumptionof reasonable effort by owner to maintain secrecy; rebuttal of presumption.

NRS 600A.035 Theftof trade secrets prohibited; criminal penalties.

NRS 600A.040 Actualor threatened misappropriation: Injunctive relief.

NRS 600A.050 Misappropriation:Damages.

NRS 600A.055 Misappropriationand posting or dissemination on Internet: Effect.

NRS 600A.060 Attorneysfees.

NRS 600A.070 Preservationof secrecy.

NRS 600A.080 Limitationof actions.

NRS 600A.090 Effectof chapter on other law and remedies.

NRS 600A.100 Inapplicabilityof chapter to acts which occurred before, or began before and continue after,July 1, 1987.

_________

NRS 600A.010 Shorttitle. This chapter may be cited as theUniform Trade Secrets Act.

(Added to NRS by 1987, 19)

NRS 600A.030 Definitions. As used in this chapter, unless the context otherwiserequires:

1. Improper means includes, without limitation:

(a) Theft;

(b) Bribery;

(c) Misrepresentation;

(d) Willful breach or willful inducement of a breach ofa duty to maintain secrecy;

(e) Willful breach or willful inducement of a breach ofa duty imposed by common law, statute, contract, license, protective order orother court or administrative order; and

(f) Espionage through electronic or other means.

2. Misappropriation means:

(a) Acquisition of the trade secret of another by aperson by improper means;

(b) Acquisition of a trade secret of another by aperson who knows or has reason to know that the trade secret was acquired byimproper means; or

(c) Disclosure or use of a trade secret of anotherwithout express or implied consent by a person who:

(1) Used improper means to acquire knowledge ofthe trade secret;

(2) At the time of disclosure or use, knew orhad reason to know that his knowledge of the trade secret was:

(I) Derived from or through a person whohad used improper means to acquire it;

(II) Acquired under circumstances givingrise to a duty to maintain its secrecy or limit its use; or

(III) Derived from or through a person whoowed a duty to the person seeking relief to maintain its secrecy or limit itsuse; 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 ithad been acquired by accident or mistake.

3. Owner means the person who holds legal orequitable 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 orcommercial entity.

5. Trade secret means information, including,without limitation, a formula, pattern, compilation, program, device, method,technique, product, system, process, design, prototype, procedure, computerprogramming instruction or code that:

(a) Derives independent economic value, actual orpotential, from not being generally known to, and not being readilyascertainable by proper means by the public or any other persons who can obtaincommercial or economic value from its disclosure or use; and

(b) Is the subject of efforts that are reasonable underthe circumstances to maintain its secrecy.

(Added to NRS by 1987, 20; A 1993, 2802; 1999, 2101)

NRS 600A.032 Presumptionof reasonable effort by owner to maintain secrecy; rebuttal of presumption. The owner of a trade secret is presumed to make areasonable effort to maintain its secrecy if the word Confidential or Privateor another indication of secrecy is placed in a reasonably noticeable manner onany medium or container that describes or includes any portion of the tradesecret. This presumption may be rebutted only by clear and convincing evidencethat the owner did not take reasonable efforts to maintain the secrecy of thetrade secret.

(Added to NRS by 2001, 942)

NRS 600A.035 Theftof trade secrets prohibited; criminal penalties. Aperson who, with intent to injure an owner of a trade secret or with reason tobelieve that his actions will injure an owner of a trade secret, withoutlimitation:

1. Steals, misappropriates, takes or conceals a tradesecret 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 withknowledge or reason to know that the trade secret was obtained as described insubsection 1 or 2;

4. Attempts to commit an offense described insubsection 1, 2 or 3;

5. Solicits another person to commit an offensedescribed in subsection 1, 2 or 3; or

6. Conspires to commit an offense described insubsection 1, 2 or 3, and one of the conspirators performs an act to furtherthe conspiracy,

is guilty ofa category C felony and shall be punished by imprisonment in the state prisonfor a minimum term of not less than 1 year and a maximum term of not more than10 years and may be further punished by a fine of not more than $10,000.

(Added to NRS by 1999, 2100)

NRS 600A.040 Actualor threatened misappropriation: Injunctive relief.

1. Actual or threatened misappropriation may beenjoined. Upon application to the court, an injunction must be terminated whenthe trade secret has ceased to exist, but the injunction may be continued foran additional reasonable period of time to eliminate commercial or otheradvantage that otherwise would be derived from the misappropriation.

2. In exceptional circumstances, an injunction maycondition future use upon payment of a reasonable royalty for no longer thanthe period of time for which use could have been prohibited. Exceptionalcircumstances include a material and prejudicial change of position beforeacquiring knowledge or reason to know of misappropriation that renders aprohibitive injunction inequitable.

3. In appropriate circumstances, the court may orderaffirmative acts to protect a trade secret. As used in this subsection,affirmative acts includes, without limitation, issuing an injunction or orderrequiring that a trade secret which has been misappropriated and posted,displayed or otherwise disseminated on the Internet be removed from theInternet immediately.

(Added to NRS by 1987, 20; A 1999, 2102; 2001, 406)

NRS 600A.050 Misappropriation:Damages.

1. Except to the extent that a material andprejudicial change of position before acquiring knowledge or reason to know ofmisappropriation renders a monetary recovery inequitable, a complainant isentitled to recover damages for misappropriation. Damages include both losscaused by misappropriation and unjust enrichment caused by misappropriationthat is not taken into account in computing the loss. In lieu of damagesmeasured by any other methods, damages caused by misappropriation may bemeasured by imposition of liability for a reasonable royalty for a misappropriatorsunauthorized disclosure or use of a trade secret.

2. If willful, wanton or reckless misappropriation ordisregard of the rights of the owner of the trade secret exists, the court mayaward exemplary damages in an amount not exceeding twice the award made undersubsection 1.

(Added to NRS by 1987, 20; A 1999, 2102)

NRS 600A.055 Misappropriationand posting or dissemination on Internet: Effect. Atrade secret that is misappropriated and posted, displayed or otherwisedisseminated on the Internet shall be deemed to remain a trade secret asdefined in NRS 600A.030 and not tohave ceased to exist for the purposes of subsection 1 of NRS 600A.040 if:

1. The owner, within a reasonable time afterdiscovering that the trade secret has been misappropriated and posted,displayed or otherwise disseminated on the Internet, obtains an injunction ororder issued by a court requiring that the trade secret be removed from theInternet; and

2. The trade secret is removed from the Internetwithin a reasonable time after the injunction or order requiring removal of thetrade secret is issued by the court.

(Added to NRS by 2001, 406)

NRS 600A.060 Attorneysfees. If:

1. A claim of misappropriation is made in bad faith;

2. A motion to terminate an injunction is made orresisted in bad faith; or

3. Willful and malicious misappropriation exists,

the courtmay award reasonable attorneys fees to the prevailing party.

(Added to NRS by 1987, 21)

NRS 600A.070 Preservationof secrecy. In any civil or criminal action,the court shall preserve the secrecy of an alleged trade secret by reasonablemeans, which may include, without limitation:

1. Granting protective orders in connection withdiscovery proceedings;

2. Holding hearings in camera;

3. Sealing the records of the action;

4. Determining the need for any information related tothe trade secret before allowing discovery;

5. Allowing the owner of the trade secret to obtain asigned agreement of confidentiality from any party who obtains knowledge of thetrade secret;

6. Ordering a person who obtains knowledge of thetrade secret to return to the owner of the trade secret any writing whichreflects or contains the trade secret; and

7. Ordering any person involved in the litigation notto disclose an alleged trade secret without previous court approval.

(Added to NRS by 1987, 21; A 1999, 2102)

NRS 600A.080 Limitationof actions. An action for misappropriationmust be brought within 3 years after the misappropriation is discovered or bythe exercise of reasonable diligence should have been discovered. For thepurposes of this section, a continuing misappropriation constitutes a singleclaim.

(Added to NRS by 1987, 21)

NRS 600A.090 Effectof chapter on other law and remedies.

1. Except as otherwise provided in subsection 2, thischapter displaces conflicting tort, restitutionary, and other law of this stateproviding civil remedies for misappropriation of a trade secret.

2. This chapter does not affect:

(a) Contractual remedies, whether or not based uponmisappropriation of a trade secret;

(b) Other civil remedies that are not based uponmisappropriation of a trade secret; or

(c) Except as otherwise provided in NRS 600A.035, criminal sanctions, whetheror not based upon misappropriation of a trade secret.

(Added to NRS by 1987, 21; A 1999, 2103)

NRS 600A.100 Inapplicabilityof chapter to acts which occurred before, or began before and continue after,July 1, 1987. This chapter does not apply to amisappropriation that occurred before July 1, 1987, or to a misappropriationthat began before and continues after July 1, 1987.

(Added to NRS by 1987, 21)