Arkansas
Arkansas Trade Secret Laws: UTSA, Remedies & Deadlines
Arkansas enacted the Arkansas Trade Secrets Act, Ark. Code §§ 4-75-601 to 4-75-607, in 1981, placing it among the earliest states to adopt a Uniform Trade Secrets Act framework. Businesses and individuals have three years from the date of discovery to bring a civil misappropriation claim in Arkansas courts.
This guide is part of our Trade Secret Laws by State series.
Information last verified on 2026-06-25. This article presents general legal information, not legal advice. For guidance specific to your situation, see our full Trade Secret Laws by State resource or consult an attorney licensed in Arkansas.
Does Arkansas have a trade secret law?
Yes. Arkansas enacted the Arkansas Trade Secrets Act in 1981, codified at Ark. Code §§ 4-75-601 to 4-75-607, making it one of the earliest states in the country to adopt the Uniform Trade Secrets Act model. The Act covers civil misappropriation claims and preempts conflicting tort or restitutionary claims based on the same underlying facts (Ark. Code § 4-75-606). Federal criminal liability for trade secret theft may also apply under the Economic Espionage Act, 18 U.S.C. §§ 1831-1832. The federal Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, provides an additional civil avenue. Arkansas courts apply the UTSA framework to determine whether information qualifies as a trade secret and whether misappropriation occurred.
What counts as a trade secret and misappropriation in Arkansas?
Under Ark. Code § 4-75-601(4), a trade secret is 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 or readily ascertainable by persons who could obtain economic value from its disclosure or use, and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Misappropriation under Ark. Code § 4-75-601(2) means acquisition of a trade secret by improper means, or disclosure or use of a trade secret without consent by someone who used improper means to acquire it, who knew or had reason to know it was obtained under a duty to maintain secrecy, or who obtained it by accident or mistake. Reverse engineering and independent development are lawful under Arkansas law and do not constitute misappropriation.
Remedies and the limitations period in Arkansas
Ark. Code § 4-75-602 authorizes injunctive relief to prevent actual or threatened misappropriation. A court may order affirmative acts to protect a trade secret and, in exceptional circumstances, condition continued use on payment of a reasonable royalty rather than issue a prohibitory injunction.
Under Ark. Code § 4-75-603, a prevailing plaintiff may recover damages for actual loss caused by misappropriation plus any unjust enrichment not already captured in the actual-loss figure. Where neither measure is provable with reasonable certainty, the court may award a reasonable royalty for the unauthorized use period.
Willful and malicious misappropriation exposes a defendant to exemplary damages of up to twice the compensatory award (Ark. Code § 4-75-604). Attorney fees are available when a claim or defense is made in bad faith or when willful and malicious misappropriation is established (Ark. Code § 4-75-605).
The limitations period is three years, measured from the date misappropriation was discovered or reasonably should have been discovered through the exercise of reasonable diligence (Ark. Code § 4-75-607).
How the federal DTSA applies in Arkansas
The Defend Trade Secrets Act of 2016, 18 U.S.C. §§ 1836-1839, creates a parallel federal civil cause of action when the trade secret relates to a product or service used in, or intended for use in, interstate or foreign commerce. The DTSA does not preempt Arkansas law (18 U.S.C. § 1838), and both claims may proceed together in the same lawsuit.
The DTSA carries a three-year limitations period from discovery (18 U.S.C. § 1836(d)), which matches the Arkansas period. Federal remedies include injunction, actual damages, unjust enrichment, and a reasonable royalty. Willful and malicious misappropriation may result in exemplary damages up to twice the compensatory award plus attorney fees (18 U.S.C. § 1836(b)(3)).
Any confidentiality agreement signed or updated after May 11, 2016, must include a whistleblower-immunity notice under 18 U.S.C. § 1833(b)(3), informing the signatory that federal law protects disclosures made to government officials or attorneys in confidence to report suspected violations. Omitting the notice forfeits the right to seek exemplary damages and attorney fees in any DTSA action. Arkansas employers who regularly use NDAs should review their agreements for this requirement.
As of 2026-06-25, this article reflects Arkansas statutes and federal law as publicly available. Laws change; consult a lawyer licensed in Arkansas before taking or forgoing any legal action.
Related articles
- Trade Secret Laws by State
- Missouri Trade Secret Laws
- Tennessee Trade Secret Laws
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Last updated: 2026-06-25.
Frequently Asked Questions
When does the three-year clock start in Arkansas?
Under Ark. Code § 4-75-607, the three-year period begins when the claimant discovered the misappropriation, or when a reasonable person exercising reasonable diligence would have discovered it. Continuing misappropriation does not reset the clock for acts of misappropriation that were already discoverable.
Can a departing employee's knowledge count as a trade secret in Arkansas?
Arkansas courts distinguish between trade secrets and the general skill or knowledge an employee acquires through experience. Specific formulas, customer lists containing private data, or proprietary processes can qualify as trade secrets. General skills and knowledge gained on the job typically do not. The employer must demonstrate both independent economic value and reasonable secrecy efforts.
Does Arkansas law allow trade secret claims without a written agreement?
Yes. The Arkansas Trade Secrets Act does not require a written contract. A claim may arise purely from misappropriation by improper means or from disclosure by someone who knew or should have known a duty of secrecy existed, regardless of whether a formal non-disclosure agreement is in place.
What qualifies as 'reasonable efforts' to maintain secrecy in Arkansas?
Arkansas courts look at the totality of the circumstances, including whether the owner used confidentiality agreements, limited access to the information, marked documents as confidential, and enforced internal security policies. No single measure is required; the standard is what a reasonable business would do given the value of the information at issue.
How does the DTSA whistleblower-immunity notice affect Arkansas employers?
Employers who require employees, contractors, or consultants to sign confidentiality agreements must include a notice explaining that federal law protects disclosures made to government officials or attorneys in confidence to report suspected legal violations. Omitting this notice from agreements signed or updated after May 11, 2016, bars the employer from seeking exemplary damages and attorney fees under the DTSA in any subsequent misappropriation action.
Sources and References
- Arkansas Trade Secrets Act, Ark. Code §§ 4-75-601 to 4-75-607(arkleg.state.ar.us)
- Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839(law.cornell.edu)
- Uniform Trade Secrets Act (Uniform Law Commission)(uniformlaws.org)
- Economic Espionage Act, 18 U.S.C. §§ 1831-1832(law.cornell.edu)