Indiana
Indiana Trade Secret Laws: UTSA, Remedies & Deadlines
Indiana protects confidential business information under the Indiana Uniform Trade Secrets Act, Ind. Code §§ 24-2-3-1 to 24-2-3-8, enacted in 1982. The statute closely follows the Uniform Trade Secrets Act framework and sets a three-year limitations period running from the date misappropriation was or reasonably should have been discovered.
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 on a specific situation involving Indiana trade secret law, consult a lawyer licensed in Indiana. See also our Trade Secret Laws by State hub for additional state guides.
Does Indiana have a trade secret law?
Indiana enacted the Indiana Uniform Trade Secrets Act in 1982, codified at Ind. Code §§ 24-2-3-1 to 24-2-3-8. Indiana was an early UTSA adopter, and its statutory language tracks the Uniform Trade Secrets Act closely, which means Indiana courts can draw on interpretive decisions from other UTSA states. Under Ind. Code § 24-2-3-8, the IUTSA displaces conflicting tort, restitution, and other civil law remedies based on misappropriation of a trade secret, while leaving intact criminal law, contract claims, and other civil claims that do not arise from misappropriation. The statute provides a predictable civil framework for Indiana businesses seeking to protect sensitive commercial information.
What counts as a trade secret and misappropriation in Indiana?
Under Ind. Code § 24-2-3-2(2), a trade secret is information, including a formula, pattern, compilation, program, device, method, technique, or process, that satisfies two requirements:
- It derives independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use.
- It is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Qualifying information can include customer lists, pricing strategies, proprietary software, engineering designs, and manufacturing processes, provided both conditions are met. The reasonableness of secrecy measures is evaluated in context; a small business may satisfy the standard with simpler controls than a large enterprise, as long as the measures are consistent with the competitive sensitivity of the information.
Under Ind. Code § 24-2-3-2(1), misappropriation means acquisition of a trade secret by improper means, or disclosure or use of a trade secret without consent by a person who obtained it through improper means, breach of a duty to maintain secrecy, or through a third party with knowledge of those circumstances. Improper means include theft, bribery, misrepresentation, breach of a duty to maintain secrecy, and espionage. Reverse engineering and independent development are expressly lawful under Ind. Code § 24-2-3-2(1), consistent with the UTSA policy of encouraging lawful competitive intelligence.
Remedies and the limitations period in Indiana
A successful plaintiff under the IUTSA may obtain the following relief:
- Injunction: Under Ind. Code § 24-2-3-3, courts may enjoin actual or threatened misappropriation. In exceptional circumstances courts may allow continued use conditioned on payment of a reasonable royalty rather than issuing an outright prohibition.
- Damages: Under Ind. Code § 24-2-3-4, a plaintiff may recover actual loss caused by misappropriation plus unjust enrichment not already captured in the actual-loss award. A reasonable royalty may be awarded as an alternative where direct damages are not readily ascertainable.
- Exemplary damages: Willful and malicious misappropriation supports an award of up to twice the compensatory damages under Ind. Code § 24-2-3-4.
- Attorney fees: Available under Ind. Code § 24-2-3-5 when a claim of misappropriation is made or defended in bad faith, or when willful and malicious misappropriation is proven.
The limitations period is three years (Ind. Code § 24-2-3-7). The period begins when the misappropriation was discovered or, through the exercise of reasonable diligence, when it should have been discovered. A continuing misappropriation is treated as a single claim, so the three-year window generally starts from the first discoverable act rather than from the most recent occurrence.
How the federal DTSA applies in Indiana
The Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, has provided a federal civil remedy since May 2016 for misappropriation of trade secrets that relate to interstate or foreign commerce. The DTSA does not preempt Indiana law (18 U.S.C. § 1838), so Indiana plaintiffs commonly plead both the DTSA and the IUTSA in a single action to access federal jurisdiction while preserving all available state remedies.
Key DTSA points for Indiana businesses include:
- A three-year federal limitations period from discovery (18 U.S.C. § 1836(d)), matching Indiana's state period.
- Ex parte seizure of property to prevent propagation of the secret, available in extraordinary circumstances (§ 1836(b)(2)).
- Exemplary damages up to twice and attorney fees for willful and malicious misappropriation, parallel to Indiana IUTSA remedies.
- Whistleblower immunity: the DTSA protects individuals who disclose trade secrets to government officials or attorneys in connection with reporting a suspected legal violation (§ 1833(b)(1)). Employers must include notice of this immunity in any confidentiality or non-disclosure agreement signed or updated after May 11, 2016 (§ 1833(b)(3)). Failure to include the notice forfeits the right to seek exemplary damages and attorney fees under the DTSA.
Federal criminal liability for trade secret theft may also arise under the Economic Espionage Act, 18 U.S.C. §§ 1831-1832.
This article provides general legal information about Indiana trade secret law as of 2026-06-25. It is not legal advice. Laws can change; consult a lawyer licensed in Indiana before taking action based on this information.
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Last updated: 2026-06-25.
Frequently Asked Questions
What qualifies as a trade secret under Indiana law?
Under Ind. Code § 24-2-3-2(2), information qualifies as a trade secret if it has independent economic value from not being generally known or readily ascertainable by those who could profit from it, and if the owner takes reasonable steps to maintain its secrecy. Formulas, software, customer lists, pricing strategies, and manufacturing processes can all qualify when both elements are satisfied.
How long do I have to sue for trade secret misappropriation in Indiana?
Ind. Code § 24-2-3-7 sets a three-year limitations period. The clock starts when the misappropriation was discovered or, through reasonable diligence, when it should have been discovered. Continuing misappropriation is treated as a single claim starting from the first discoverable act, so delay in filing can forfeit otherwise valid claims.
What damages can I recover in an Indiana trade secret case?
A prevailing plaintiff may recover actual losses plus unjust enrichment, or a reasonable royalty where direct damages are not readily ascertainable. Willful and malicious misappropriation can yield exemplary damages up to twice the compensatory award under Ind. Code § 24-2-3-4. Attorney fees are available for willful and malicious misappropriation or bad-faith claims. Courts may also issue injunctions to stop ongoing or threatened misappropriation.
Do NDAs and reasonable security measures affect Indiana trade secret protection?
Yes. Reasonable efforts to maintain secrecy are a required element of the trade secret definition under Ind. Code § 24-2-3-2(2). Non-disclosure agreements, access controls, password protection, and employee training all support the reasonableness showing. Businesses that fail to implement meaningful protections risk having a court find that the information did not qualify as a trade secret, regardless of its commercial sensitivity.
Should I plead both the Indiana Uniform Trade Secrets Act and the federal DTSA?
In most cases, yes. The DTSA provides access to federal court and adds tools such as ex parte seizure that are not available under state law alone. The IUTSA supplies parallel state remedies, and the DTSA does not preempt Indiana law. Because both carry the same three-year limitations period, there is generally no timing disadvantage to pleading both. Consult Indiana counsel to determine the best approach for your situation.
Sources and References
- Indiana Uniform Trade Secrets Act, Ind. Code §§ 24-2-3-1 to 24-2-3-8(iga.in.gov).gov
- 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)