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Last Modified:  2011-08-04
9 V.S.A. § 4601 through 9 V .S.A. § 4609
§ 4601. Definitions
As used in this chapter:  
(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:  
(i) used improper means to acquire knowledge of the trade secret; or  
(ii) 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  
(iii) 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) "T rade secret" means information, including a formula, pattern, compilation, program, 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 .
§ 4602. Injunctive relief
(a) 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.  
(b) 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, but are not limited to, a material and
prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction
inequitable.  
(c) In appropriate circumstances, af firmative acts to protect a trade secret may be compelled by court order .
§ 4603. Damages
(a) 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 is entitled to recover damages for misappropriation. Damages
can 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.  
(b) If malicious misappropriation exists, the court may award punitive damages.Vermont Trade Secrets ActAbout Recently Filed Cases Recent Decisions Legislative Developments Statutes Search
§ 4604. [Reserved.]
§ 4605. Preservation of secrecy
In an action under this chapter , 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.
§ 4606. [Reserved.]
§ 4607. Effect on other law
(a) Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary , and any other law of this state
providing civil remedies for misappropriation of a trade secret.  
(b) This chapter 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.
§ 4608. Uniformity of application and construction
This chapter shall be applied and construed to ef fectuate its general purpose to make uniform the law with respect to the subject of this
chapter among states enacting it.
§ 4609. T ime of taking effect
This chapter shall take ef fect on July 1, 1996, and does not apply to misappropriation occurring prior to the ef fective date. With respect to a
continuing misappropriation that began prior to the ef fective date, the chapter also does not apply to the continuing misappropriation that
occurs after the ef fective date.
Statute of limitations for trade secrets actions - 12 V .S.A. § 523
§ 523. T rade secrets
An action for misappropriation of trade secrets under chapter 143 of T itle 9 shall be commenced within three years after the cause of action
accrues, and not after . The cause of action shall be deemed to accrue as of the date the misappropriation was discovered or reasonably
should have been discovered.
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