Trade Secret Laws by State: UTSA & DTSA (2026)

Trade secret law in the United States runs on two tracks: the federal Defend Trade Secrets Act of 2016 (18 U.S.C. § 1836) and each state's own statute. Forty-nine jurisdictions have adopted a version of the Uniform Trade Secrets Act. New York is the only state that still relies on common law.

This article presents general legal information about United States federal and state law, not legal advice. Statutes change; confirm the current law for your jurisdiction.

Jurisdiction scope: This hub covers civil trade-secret law in all 50 states, the District of Columbia, and the federal DTSA, plus the federal criminal Economic Espionage Act. It links a detailed, citation-backed guide for each state. For who owns and can protect AI-written code, a related question, see AI copyright law in the United States.

What is a trade secret?

A trade secret is information that a business keeps confidential because its secrecy gives it economic value. Under the DTSA (18 U.S.C. § 1839) and the UTSA, the same two-part test applies: the information must (1) derive independent economic value, actual or potential, from not being generally known or readily ascertainable by others who could profit from it, and (2) be the subject of efforts that are reasonable under the circumstances to keep it secret. Common examples include customer lists, manufacturing processes, source code, pricing models, formulas, and supplier terms.

Two limits matter. First, secrecy is mandatory: if the information becomes public, protection ends permanently. Second, not all copying is wrongful. Reverse engineering a lawfully obtained product and independent development are expressly proper means under both the DTSA and the UTSA, so a competitor who figures out your process on its own has not misappropriated anything.

Federal and state law: the DTSA and the UTSA

The United States protects trade secrets through parallel federal and state regimes. The Defend Trade Secrets Act of 2016 created a federal civil cause of action, letting an owner sue in federal court when the trade secret relates to a product or service used in interstate or foreign commerce. Crucially, the DTSA does not displace state law (18 U.S.C. § 1838), so plaintiffs commonly bring federal and state claims together.

At the state level, 48 states plus the District of Columbia have enacted the Uniform Trade Secrets Act, first promulgated in 1979 and amended in 1985. Minnesota adopted it in 1980; Massachusetts was the last, in 2018. The UTSA standardizes the definition of a trade secret, the meaning of misappropriation, the three-year limitations period, and the available remedies. New York is the lone holdout with no statute, and North Carolina enacted its own 1981 Trade Secrets Protection Act that the Uniform Law Commission does not count as a formal UTSA adoption.

Separately, the federal Economic Espionage Act (18 U.S.C. §§ 1831-1832) makes trade-secret theft a crime, with § 1831 covering theft that benefits a foreign government and § 1832 covering domestic commercial theft.

How misappropriation works, and the remedies

Misappropriation means acquiring a trade secret by improper means (theft, bribery, misrepresentation, or breach of a duty to keep it secret), or using or disclosing it without consent when the person knew or had reason to know it was obtained improperly. An owner who proves misappropriation can seek several remedies under UTSA §§ 2-4 and DTSA § 1836(b)(3):

• An injunction stopping actual or threatened use, for as long as the secret would have remained protectable.
• Damages for actual loss plus any unjust enrichment not captured by that loss, or, as an alternative, a reasonable royalty.
• Exemplary damages of up to twice the compensatory award when the misappropriation was willful and malicious.
• Attorney fees when the misappropriation was willful and malicious, or when a claim was made in bad faith.

One DTSA trap for employers: under 18 U.S.C. § 1833(b)(3), any agreement governing confidential information signed or updated after May 11, 2016 must notify the employee of the statute's whistleblower immunity. If it does not, the employer cannot recover exemplary damages or attorney fees from that employee, even for willful theft.

How long you have to sue: limitations by state

The default limitations period is three years from when the misappropriation was discovered or reasonably should have been discovered. A handful of states deviate, so the deadline depends on where you sue.

Continuing misappropriation is generally treated as a single claim that runs from the first act the owner discovered or should have discovered, so prompt investigation matters.

Trade secret laws by state

Each guide below covers that state's statute citation, its definition of a trade secret, the limitations period, available remedies, and how the federal DTSA overlays state law. New York's guide covers the common-law test instead of a statute.

Northeast states

The table below covers 9 states in the Northeast.

Midwest states

The table below covers 12 states in the Midwest.

Southern states

The table below covers 16 states in the South, plus the District of Columbia.

Western states

The table below covers 13 states in the West.

New York: the common-law outlier

New York is the only state without a trade-secrets statute. Its courts apply the common law, weighing the six factors from the Restatement of Torts § 757, comment b: how widely the information is known outside the business, how widely it is known to employees, the secrecy measures taken, the information's value to the business and its competitors, the effort and money spent developing it, and how easily others could properly acquire or duplicate it. A New York plaintiff must still show it held a trade secret and that the defendant used it through a breach of confidence or improper means. The federal DTSA applies in New York without any state-law limitation, which is why many New York owners sue under the DTSA in federal court.

Trade secrets and AI-generated code

Trade-secret law is the state-law claim that most often travels alongside a software copyright dispute. Source code can be both copyrighted and a protected trade secret, and a departing engineer who takes proprietary code may face a trade-secret claim even where copyright questions are murky. This intersection has grown sharper as teams build with AI coding tools. For how copyright treats software and AI-written code, see is AI-generated code copyright infringement? and the broader AI copyright law hub.

This is general legal information, not legal advice. It describes United States federal and state trade-secret law and does not address your specific situation. Trade-secret disputes are fact-specific and deadlines are strict. Consult an attorney licensed in your jurisdiction before acting.

Related articles

• Is AI-generated code copyright infringement?
• AI copyright law in the United States
• AI laws and regulation in the United States

Targeted corrections on 2026-09-10: Virginia and Maine filing deadlines and UTSA adoption history.

Frequently Asked Questions

What qualifies as a trade secret?

Information qualifies if it derives independent economic value from not being generally known or readily ascertainable, and the owner takes reasonable measures to keep it secret (18 U.S.C. § 1839; UTSA § 1). Common examples are customer lists, formulas, source code, processes, and pricing models. Reverse engineering and independent development are lawful and do not count as misappropriation.

What is the difference between the federal DTSA and state trade-secret law?

The DTSA (2016) creates a federal civil claim you can bring in federal court when the secret relates to interstate or foreign commerce. State laws, usually based on the UTSA, provide parallel state-court remedies. The DTSA does not preempt state law (18 U.S.C. § 1838), so owners often plead both. DTSA-only features include civil ex parte seizure (§ 1836(b)(2)) and the employer whistleblower-notice rule.

How long do I have to file a trade-secret lawsuit?

Usually three years from when you discovered or should have discovered the misappropriation, under the DTSA (§ 1836(d)) and most state statutes (UTSA § 6). Exceptions: Alabama is 2 years; Maine and Ohio are 4 years; Georgia, Illinois, and Missouri are 5 years. Because continuing misappropriation runs from the first act you should have discovered, investigate suspected theft promptly.

What remedies are available if my trade secret is stolen?

Injunctions to stop use, actual damages plus unjust enrichment (or a reasonable royalty), exemplary damages up to twice the award for willful and malicious misappropriation, and attorney fees in willful or bad-faith cases (UTSA §§ 2-4; DTSA § 1836(b)(3)). Courts weigh the hardship to the defendant against the harm to the owner when shaping injunctive relief.

Does New York have a trade-secrets statute?

No. New York is the only state without one. Its courts apply the common-law Restatement of Torts § 757 six-factor test, and plaintiffs must show they held a trade secret that the defendant used through breach of confidence or improper means. The federal DTSA still applies in New York, so many owners sue under the DTSA in federal court.

How is a trade secret different from a patent or copyright?

A patent or copyright grants a time-limited monopoly in exchange for public disclosure. A trade secret protects information precisely because it stays secret, and it can last indefinitely, but only while secrecy holds. If the information becomes public by any means, including lawful reverse engineering, trade-secret protection is lost permanently.