Browse by State
View cases from California
Last Modified:  2011-07-31
Cal. Civ . Code §§ 3426 through 3426.1 1 (201 1)
§ 3426. Citation of title.
This title may be cited as the Uniform T rade Secrets Act.
§ 3426.1. Definitions.
As used in this title, unless the context requires otherwise:
(a) "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. Reverse engineering or independent derivation alone shall not be considered improper
means.
(b) "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; or
(B) 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 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 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.
(c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, limited liability company , association, joint
venture, government, governmental subdivision or agency , or any other legal or commercial entity .
(d) "T rade 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 the public or to other persons who can
obtain economic value from its disclosure or use; and
(2) Is the subject of ef forts that are reasonable under the circumstances to maintain its secrecy .
§ 3426.2. Injunction against actual or threatened misappropriation.  
(a) Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction shall be terminated when the tradeCalifornia Uniform Trade Secrets ActAbout Recently Filed Cases Recent Decisions Legislative Developments Statutes Search
secret has ceased to exist, but the injunction may be continued for an additional period of time in order to eliminate commercial advantage
that otherwise would be derived from the misappropriation.
(b) If the court determines 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, af firmative acts to protect a trade secret may be compelled by court order .
§ 3426.3. Damages.
(a) 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) If neither damages nor unjust enrichment caused by misappropriation are provable, the court may order payment of a reasonable
royalty for no longer than the period of time 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 subdivision (a) or (b).
§ 3426.4. Attorney fees and costs.
If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or willful and
malicious misappropriation exists, the court may award reasonable attorney's fees and costs to the prevailing party . Recoverable costs
hereunder shall include a reasonable sum to cover the services of expert witnesses, who are not regular employees of any party , actually
incurred and reasonably necessary in either , or both, preparation for trial or arbitration, or during trial or arbitration, of the case by the
prevailing party .
§ 3426.5. Methods for preserving secrecy of trade secret.
In an action under this title, 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.
§ 3426.6. Limitation period; Accrual of cause of action.
An action for misappropriation must be brought within three 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.
§ 3426.7. Effect of title on other statutes or remedies.
(a) Except as otherwise expressly provided, this title does not supersede any statute relating to misappropriation of a trade secret, or any
statute otherwise regulating trade secrets.
(b) This title does not af fect (1) contractual remedies, whether or not based upon misappropriation of a trade secret, (2) other civil remedies
that are not based upon misappropriation of a trade secret, or (3) criminal remedies, whether or not based upon misappropriation of a trade
secret.
(c) This title does not af fect the disclosure of a record by a state or local agency under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of T itle 1 of the Government Code). Any determination as to whether the disclosure of a
record under the California Public Records Act constitutes a misappropriation of a trade secret and the rights and remedies with respect
thereto shall be made pursuant to the law in ef fect before the operative date of this title.
§ 3426.8. Statutory Construction.
This title shall be applied and construed to ef fectuate its general purpose to make uniform the law with respect to the subject of this title
among states enacting it.
§ 3426.9. Severability .
If any provision of this title or its application to any person or circumstances is held invalid, the invalidity does not af fect other provisions or
applications of the title which can be given ef fect without the invalid provision or application, and to this end the provisions of this title are
severable.  
§ 3426.10. Application of title to acts occurring prior to statutory date; Continuing acts.This title does not apply to misappropriation occurring prior to January 1, 1985. If a continuing misappropriation otherwise covered by this
title began before January 1, 1985, this title does not apply to the part of the misappropriation occurring before that date. This title does
apply to the part of the misappropriation occurring on or after that date unless the appropriation was not a misappropriation under the law
in effect before the operative date of this title.
§ 3426.1 1. Applicability of official proceedings privilege to disclosure of trade secret information.
Notwithstanding subdivision (b) of Section 47, in any legislative or judicial proceeding, or in any other of ficial proceeding authorized by law ,
or in the initiation or course of any other proceeding authorized by law and reviewable pursuant to Chapter 2 (commencing with Section
1084) of T itle 1 of Part 3 of the Code of Civil Procedure, the voluntary , intentional disclosure of trade secret information, unauthorized by its
owner , to a competitor or potential competitor of the owner of the trade secret information or the agent or representative of such a
competitor or potential competitor is not privileged and is not a privileged communication for purposes of Part 2 (commencing with Section
43) of Division 1.
This section does not in any manner limit, restrict, impair , or otherwise modify either the application of the other subdivisions of Section 47
to the conduct to which this section applies or the court's authority to control, order , or permit access to evidence in any case before it.
Nothing in this section shall be construed to limit, restrict, or otherwise impair , the capacity of persons employed by public entities to report
improper government activity , as defined in Section 10542 of the Government Code, or the capacity of private persons to report improper
activities of a private business.
Site Map  Disclaimer  Contact
"Brooklaw," the BLS Seal, and Logo are service marks  
Contents Copyright © 1995-2010 Brooklyn Law School250 Joralemon St.  
Brooklyn, NY 11201 USA  
(718) 625-2200