CHAPTER 3. TRADE SECRETS
IC 24-2-3
Chapter 3. Trade Secrets
IC 24-2-3-1
Short title; construction; purpose
Sec. 1. (a) This chapter may be cited as the Uniform Trade Secrets
Act.
(b) This chapter shall be applied and construed to effectuate its
general purpose to make uniform the law with respect to the subject
matter of this chapter among states enacting the provisions of this
chapter.
(c) The chapter displaces all conflicting law of this state
pertaining to the misappropriation of trade secrets, except contract
law and criminal law.
As added by Acts 1982, P.L.148, SEC.1.
IC 24-2-3-2
Definitions
Sec. 2. As used in this chapter, unless the context requires
otherwise:
"Improper means" includes theft, bribery, misrepresentation,
breach or inducement of a breach of a duty to maintain secrecy, or
espionage through electronic or other means.
"Misappropriation" means:
(1) 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
(2) disclosure or use of a trade secret of another without express
or implied consent by a person who:
(A) used improper means to acquire knowledge of the trade
secret;
(B) 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 utilized
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
(C) 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.
"Person" means a natural person, limited liability company,
corporation, business trust, estate, trust, partnership, association,
joint venture, government, governmental subdivision or agency, or
any other legal or commercial entity.
"Trade secret" means information, including a formula, pattern,
compilation, program, device, method, technique, or process, that:
(1) derives independent economic value, actual or potential,
from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use; and
(2) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy.
As added by Acts 1982, P.L.148, SEC.1. Amended by P.L.8-1993,
SEC.343.
IC 24-2-3-3
Injunction against misappropriation; exceptional circumstances
Sec. 3. (a) Actual or threatened misappropriation may be
enjoined. Upon application to the court, an injunction shall be
terminated when the trade secret has ceased to exist, but the
injunction may be continued for an additional reasonable period of
time in order to eliminate commercial advantage that otherwise
would be derived from the misappropriation.
(b) If the court determines in exceptional circumstances that it
would be unreasonable to prohibit future use, an injunction may
condition future use upon payment of a reasonable royalty for no
longer than the period of time the use could have been prohibited.
(c) In appropriate circumstances, affirmative acts to protect a
trade secret may be compelled by court order.
As added by Acts 1982, P.L.148, SEC.1. Amended by P.L.50-1984,
SEC.3.
IC 24-2-3-4
Damages for misappropriation and unjust enrichment; royalty;
exemplary damages
Sec. 4. (a) In addition to or in lieu of injunctive relief, a
complainant may recover damages for the actual loss caused by
misappropriation. A complainant also may recover for the unjust
enrichment caused by misappropriation that is not taken into account
in computing damages for actual loss.
(b) When neither damages nor unjust enrichment are provable, the
court may order payment of a reasonable royalty for no longer than
the period during which the use could have been prohibited.
(c) If willful and malicious misappropriation exists, the court may
award exemplary damages in an amount not exceeding twice any
award made under subsection (a).
As added by Acts 1982, P.L.148, SEC.1. Amended by P.L.50-1984,
SEC.4.
IC 24-2-3-5
Attorney's fees; conditions
Sec. 5. 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;
the court may award reasonable attorney's fees to the prevailing
party.
As added by Acts 1982, P.L.148, SEC.1.
IC 24-2-3-6
Preservation of secrecy of trade secret
Sec. 6. In an action under this chapter, a court shall preserve the
secrecy of an alleged trade secret by reasonable means, which may
include granting protective orders in connection with discovery
proceedings, holding in-camera hearings, sealing the records of the
action, and ordering any person involved in the litigation not to
disclose an alleged trade secret without prior court approval.
As added by Acts 1982, P.L.148, SEC.1.
IC 24-2-3-7
Limitation of action
Sec. 7. An action for misappropriation must be brought within
three (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.
As added by Acts 1982, P.L.148, SEC.1.
IC 24-2-3-8
Continuing misappropriation commenced before September 1,
1982
Sec. 8. If a continuing misappropriation otherwise covered by this
chapter began before September 1, 1982, the chapter does not apply
to the part of the misappropriation that occured before that date. It
does apply to the part that occurs after August 31, 1982, unless the
appropriation was not a misappropriation under the law displaced by
this chapter.
As added by Acts 1982, P.L.148, SEC.1.