47-25.1 Trade Secrets
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<![CDATA[CHAPTER 47-25.1TRADE SECRETS47-25.1-01. Definitions. As used in this chapter, unless the context requires otherwise:1."Improper means" includes theft, bribery, misrepresentation, breach or inducement<br>of a breach of a duty to maintain secrecy, or espionage through electronic or other<br>means.2."Misappropriation" means:a.Acquisition of a trade secret of another by a person who knows or has reason<br>to know that the trade secret was acquired by improper means; orb.Disclosure or use of a trade secret of another without express or implied<br>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 the<br>person's knowledge of the trade secret was:(a)Derived from or through a person who had utilized improper<br>means to acquire it;(b)Acquired under circumstances giving rise to a duty to maintain its<br>secrecy or limit its use; or(c)Derived from or through a person who owed a duty to the person<br>seeking relief to maintain its secrecy or limit its use; or(3)Before a material change of the person's position, knew or had reason to<br>know that it was a trade secret and that knowledge of it had been<br>acquired by accident or mistake.3."Person" means a natural person, corporation, limited liability company, business<br>trust, estate, trust, partnership, association, joint venture, government, governmental<br>subdivision or agency, or any other legal or commercial entity.4."Trade secret" means information, including a formula, pattern, compilation,<br>program, device, method, technique, or process, that:a.Derives independent economic value, actual or potential, from not being<br>generally known to, and not being readily ascertainable by proper means by,<br>other persons who can obtain economic value from its disclosure or use; andb.Is the subject of efforts that are reasonable under the circumstances to<br>maintain its secrecy.47-25.1-02. Injunctive relief.1.Actual or threatened misappropriation may be enjoined. Upon application to the<br>court, an injunction must be terminated when the trade secret has ceased to exist,<br>but the injunction may be continued for an additional reasonable period of time to<br>eliminate commercial advantage that otherwise would be derived from the<br>misappropriation.Page No. 12.In exceptional circumstances, an injunction may condition future use upon payment<br>of a reasonable royalty for no longer than the period of time for which use could<br>have been prohibited. Exceptional circumstances include a material and prejudicial<br>change of position prior to acquiring knowledge or reason to know of<br>misappropriation that renders a prohibitive injunction inequitable.3.In appropriate circumstances, affirmative acts to protect a trade secret may be<br>compelled by court order.47-25.1-03. Damages.1.Except to the extent that a material and prejudicial change of position prior to<br>acquiring knowledge or reason to know of misappropriation renders a monetary<br>recoveryinequitable,acomplainantisentitledtorecoverdamagesformisappropriation.Damages can include both the actual loss caused bymisappropriation and the unjust enrichment caused by misappropriation that is not<br>taken into account in computing actual loss. In lieu of damages measured by any<br>other method, the damages caused by misappropriation may be measured by<br>imposition of liability for a reasonable royalty for a misappropriator's unauthorized<br>disclosure or use of a trade secret.2.If willful and malicious misappropriation exists, the court may award exemplary<br>damages in an amount not exceeding twice any award made under subsection 1.47-25.1-04.Attorney's fees.If a claim of misappropriation is made in bad faith, amotion to terminate an injunction is made or resisted in bad faith, or willful and malicious<br>misappropriation exists, the court may award reasonable attorney's fees to the prevailing party.47-25.1-05. Preservation of secrecy. In an action under this chapter, a court shallpreserve the secrecy of an alleged trade secret by reasonable means, which may include<br>granting protective orders in connection with discovery proceedings, holding in camera hearings,<br>sealing the records of the action, and ordering any person involved in the litigation not to disclose<br>an alleged trade secret without prior court approval.47-25.1-06.Statute of limitations.An action for misappropriation must be broughtwithin three years after the misappropriation is discovered or by the exercise of reasonable<br>diligence should have been discovered.For the purposes of this section, a continuingmisappropriation constitutes a single claim.47-25.1-07. Effect on other law.1.Except as provided in subsection 2, this chapter displaces conflicting tort,<br>restitutionary, and other law of this state providing civil remedies for misappropriation<br>of a trade secret.2.This chapter does not affect:a.Contractual remedies, whether or not based upon misappropriation of a trade<br>secret;b.Other civil remedies that are not based upon misappropriation of a trade secret;<br>orc.Criminal remedies, whether or not based upon misappropriation of a trade<br>secret.47-25.1-08. Short title. This chapter may be cited as the Uniform Trade Secrets Act.Page No. 2Document Outlinechapter 47-25.1 trade secrets]]>