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 SecretsAct.
(b) This chapter shall be applied and construed to effectuate itsgeneral purpose to make uniform the law with respect to the subjectmatter of this chapter among states enacting the provisions of thischapter.
(c) The chapter displaces all conflicting law of this statepertaining to the misappropriation of trade secrets, except contractlaw 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 requiresotherwise:
"Improper means" includes theft, bribery, misrepresentation,breach or inducement of a breach of a duty to maintain secrecy, orespionage through electronic or other means.
"Misappropriation" means:
(1) acquisition of a trade secret of another by a person whoknows or has reason to know that the trade secret was acquiredby improper means; or
(2) disclosure or use of a trade secret of another without expressor implied consent by a person who:
(A) used improper means to acquire knowledge of the tradesecret;
(B) at the time of disclosure or use, knew or had reason toknow that his knowledge of the trade secret was:
(i) derived from or through a person who had utilizedimproper means to acquire it;
(ii) acquired under circumstances giving rise to a duty tomaintain its secrecy or limit its use; or
(iii) derived from or through a person who owed a duty tothe person seeking relief to maintain its secrecy or limit itsuse; or
(C) before a material change of his position, knew or hadreason to know that it was a trade secret and that knowledgeof 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, orany 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 readilyascertainable by proper means by, other persons who can obtaineconomic value from its disclosure or use; and
(2) is the subject of efforts that are reasonable under thecircumstances 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 beenjoined. Upon application to the court, an injunction shall beterminated when the trade secret has ceased to exist, but theinjunction may be continued for an additional reasonable period oftime in order to eliminate commercial advantage that otherwisewould be derived from the misappropriation.
(b) If the court determines in exceptional circumstances that itwould be unreasonable to prohibit future use, an injunction maycondition future use upon payment of a reasonable royalty for nolonger than the period of time the use could have been prohibited.
(c) In appropriate circumstances, affirmative acts to protect atrade 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, acomplainant may recover damages for the actual loss caused bymisappropriation. A complainant also may recover for the unjustenrichment caused by misappropriation that is not taken into accountin computing damages for actual loss.
(b) When neither damages nor unjust enrichment are provable, thecourt may order payment of a reasonable royalty for no longer thanthe period during which the use could have been prohibited.
(c) If willful and malicious misappropriation exists, the court mayaward exemplary damages in an amount not exceeding twice anyaward 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 inbad 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 thesecrecy of an alleged trade secret by reasonable means, which mayinclude granting protective orders in connection with discoveryproceedings, holding in-camera hearings, sealing the records of theaction, and ordering any person involved in the litigation not todisclose 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 withinthree (3) years after the misappropriation is discovered or by theexercise of reasonable diligence should have been discovered. Forthe purposes of this section, a continuing misappropriationconstitutes 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 thischapter began before September 1, 1982, the chapter does not applyto the part of the misappropriation that occured before that date. Itdoes apply to the part that occurs after August 31, 1982, unless theappropriation was not a misappropriation under the law displaced bythis chapter.
As added by Acts 1982, P.L.148, SEC.1.