Nrs: Chapter 600A - Trade Secrets (Uniform Act)

Link to law: https://www.leg.state.nv.us/NRS/NRS-600A.html
Published: 2015

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[Rev. 11/21/2013 12:32:17

PM--2013]



CHAPTER 600A - TRADE SECRETS (UNIFORM ACT)

NRS 600A.010        Short

title.

NRS 600A.030        Definitions.

NRS 600A.032        Presumption

of reasonable effort by owner to maintain secrecy; rebuttal of presumption.

NRS 600A.035        Theft

of trade secrets prohibited; criminal penalties.

NRS 600A.040        Actual

or threatened misappropriation: Injunctive relief.

NRS 600A.050        Misappropriation:

Damages.

NRS 600A.055        Misappropriation

and posting or dissemination on Internet: Effect.

NRS 600A.060        Attorney’s

fees.

NRS 600A.070        Preservation

of secrecy.

NRS 600A.080        Limitation

of actions.

NRS 600A.090        Effect

of chapter on other law and remedies.

NRS 600A.100        Inapplicability

of chapter to acts which occurred before, or began before and continue after,

July 1, 1987.

_________

_________

 

      NRS 600A.010  Short title.  This

chapter may be cited as the Uniform Trade Secrets Act.

      (Added to NRS by 1987, 19)

      NRS 600A.030  Definitions.  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 or her 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 or her

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)

      NRS 600A.032  Presumption of reasonable effort by owner to maintain secrecy;

rebuttal of presumption.  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)

      NRS 600A.035  Theft of trade secrets prohibited; criminal penalties.  A person who, with intent to injure an owner

of a trade secret or with reason to believe that his or her 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)

      NRS 600A.040  Actual or threatened misappropriation: Injunctive relief.

      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)

      NRS 600A.050  Misappropriation: Damages.

      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)

      NRS 600A.055  Misappropriation and posting or dissemination on Internet:

Effect.  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)

      NRS 600A.060  Attorney’s fees.  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)

      NRS 600A.070  Preservation of secrecy.  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)

      NRS 600A.080  Limitation of actions.  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)

      NRS 600A.090  Effect of chapter on other law and remedies.

      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)

      NRS 600A.100  Inapplicability of chapter to acts which occurred before, or

began before and continue after, July 1, 1987.  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)