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Last Modified:  2011-07-31
KRS §§ 365.880 through 365.900 (201 1)
§ 365.880. Definitions.
As used in KRS 365.880 to 365.900, unless the context requires otherwise:
(1) "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;
(2) "Misappropriation" means:
(a) 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
(b) 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; or
2. At the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was:
a. Derived from or through a person who had utilized improper means to acquire it;
b. Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or
c. 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 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) "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 .
(4) "T rade secret" means information, including a formula, pattern, compilation, program, data, device, method, technique, or process, that:
(a) 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
(b) Is the subject of ef forts that are reasonable under the circumstances to maintain its secrecy .
§ 365.882. Injunctive relief.
(1) 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.
(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 shall include, but not be limited to, a material andKentucky Trade Secrets ActAbout Recently Filed Cases Recent Decisions Legislative Developments Statutes Search
prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction
inequitable.
(3) In appropriate circumstances, af firmative acts to protect a trade secret may be compelled by court order .
§ 365.884. Damages.
(1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of
misappropriation renders a monetary recovery inequitable, a complainant shall be entitled to recover damages for misappropriation.
Damages may include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not
taken into account in computing actual loss. In lieu of damages measured by any other methods, the 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 and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award
made under subsection (1).
§ 365.886. Attorney's fees.
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 to the prevailing party . 
§ 365.888. Preservation of secrecy . 
In an action under KRS 365.880 to 365.900, 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.  
§ 365.890. Statute of limitations.
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.
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