Maryland Trade Secret Laws: UTSA, Remedies & Deadlines

Maryland's Uniform Trade Secrets Act, Md. Code, Com. Law §§ 11-1201 to 11-1209, has governed trade secret protection in Maryland since 1989. A civil claim for misappropriation must be brought within three years of discovering the wrong (§ 11-1206), and the federal Defend Trade Secrets Act provides a concurrent federal remedy without displacing the state statute.

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 a nationwide overview, see Trade Secret Laws by State.

Does Maryland have a trade secret law?

Maryland enacted the Maryland Uniform Trade Secrets Act in 1989, codified at Md. Code, Com. Law §§ 11-1201 to 11-1209. The statute follows the Uniform Law Commission's UTSA framework and governs civil claims by any person or entity whose trade secrets are misappropriated in Maryland. It defines trade secret and misappropriation, prescribes available remedies, and fixes the three-year limitations period. Under § 11-1207, the MUTSA displaces conflicting state tort and restitution claims that would otherwise govern trade-secret disputes, making it the primary state-law vehicle for these cases in Maryland courts. The federal Defend Trade Secrets Act runs alongside the MUTSA without preempting it (18 U.S.C. § 1838), so a claimant may assert both state and federal claims in the same lawsuit.

What counts as a trade secret and misappropriation in Maryland?

Md. Code, Com. Law § 11-1201(e) defines a trade secret as information, including a formula, pattern, compilation, program, device, method, technique, or process, that meets two conditions. First, the information must derive independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means by others who can profit from its disclosure or use. Second, the owner must have made efforts that are reasonable under the circumstances to maintain its secrecy. Common categories include customer and supplier lists, manufacturing processes, source code, pricing strategies, and proprietary formulas.

Misappropriation under § 11-1201(c) includes acquiring another’s trade secret while knowing or having reason to know it was acquired through improper means, such as theft, bribery, espionage, or breach of a confidentiality duty. It also covers unauthorized disclosure or use under the conditions in § 11-1201(c)(2), including use by someone who acquired it improperly or knew or had reason to know of the improper source or secrecy duty. Section 11-1201(b) lists improper means but does not expressly address reverse engineering or independent development. Proper acquisition falls outside the improper-acquisition branch of § 11-1201(c); independent work that does not acquire, disclose, or use another’s secret does not meet that definition.

Remedies and the limitations period in Maryland

The Maryland Uniform Trade Secrets Act provides several categories of relief for successful claimants:

• Injunctions: Under § 11-1202, a court may enjoin actual or threatened misappropriation for as long as would be necessary to eliminate the commercial advantage derived from the misappropriation. In exceptional circumstances a court may permit ongoing use conditioned on payment of a reasonable royalty.
• Damages: Section 11-1203(b)-(c) allows recovery of actual loss from misappropriation plus unjust enrichment of the defendant not captured in that loss, or, as an alternative, a reasonable royalty for the period of unauthorized use.
• Exemplary damages: When misappropriation is willful and malicious, the court may award exemplary damages up to twice the compensatory award (§ 11-1203(d)).
• Attorney fees: Under § 11-1204, the court may award reasonable fees to the prevailing party for a misappropriation claim made in bad faith, a motion to terminate an injunction made or resisted in bad faith, or willful and malicious misappropriation.

The limitations period is three years. Under § 11-1206, an action must be brought within three years after the misappropriation is discovered or should have been discovered through the exercise of reasonable diligence. Continuing misappropriation is treated as a single claim accruing from the first act that was or reasonably should have been discovered. Because this rule compresses the window, businesses should investigate and document suspected theft as soon as it comes to their attention.

How the federal DTSA applies in Maryland

The Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, creates a federal civil action for trade-secret misappropriation when the secret relates to a product or service used in, or intended for use in, interstate or foreign commerce. Because the DTSA expressly preserves all state remedies (18 U.S.C. § 1838), Maryland businesses may plead both DTSA and MUTSA claims together and select the forum and procedural tools that best fit the circumstances.

The DTSA provides one remedy not available under Maryland's statute: a civil ex parte seizure order under § 1836(b)(2), which allows a court to order immediate seizure of materials containing a trade secret before the defendant receives notice, in extraordinary circumstances where other injunctive relief would be inadequate. The DTSA's three-year limitations period from discovery (§ 1836(d)) matches Maryland's under § 11-1206.

Maryland employers should also review their nondisclosure and confidentiality agreements. Any such agreement signed or updated after May 11, 2016 must contain the DTSA whistleblower-immunity notice required by 18 U.S.C. § 1833(b)(3). An employer that omits this notice forfeits the ability to seek exemplary damages and attorney fees from that employee under the DTSA, even when the misappropriation is willful and malicious.

This is general legal information, not legal advice. It describes Maryland and federal trade secret law as of 2026-06-25 and does not address your specific facts. Trade-secret disputes are fact-intensive and filing deadlines are strict. Consult an attorney licensed in Maryland before taking action.

Related articles

• Trade Secret Laws by State
• Maine Trade Secret Laws
• Massachusetts Trade Secret Laws
• Is AI-generated code copyright infringement?

Last updated: 2026-06-25.

Frequently Asked Questions

What qualifies as a trade secret in Maryland?

Under Md. Code, Com. Law § 11-1201(e), information qualifies if it derives independent economic value from not being generally known or readily ascertainable by others who could profit from it, and the owner takes reasonable measures to maintain secrecy. Customer lists, formulas, source code, and pricing models are common examples. Reverse engineering and independent development are lawful and do not constitute misappropriation.

How long do I have to sue for trade secret misappropriation in Maryland?

Three years from when the misappropriation was discovered or reasonably should have been discovered, under Md. Code, Com. Law § 11-1206. Continuing misappropriation is treated as a single claim accruing from the first act that was or should have been discovered with reasonable diligence. Prompt investigation when misappropriation is suspected helps preserve the claim.

What remedies does Maryland's Uniform Trade Secrets Act provide?

The MUTSA authorizes injunctions to stop ongoing or threatened misappropriation (§ 11-1202), actual damages plus unjust enrichment or a reasonable royalty (§ 11-1203(b)-(c)), exemplary damages up to twice the award for willful and malicious misappropriation (§ 11-1203(d)), and reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, an injunction-termination motion made or resisted in bad faith, or willful and malicious misappropriation (§ 11-1204).

Do Maryland NDAs need to include a DTSA whistleblower notice?

Yes. Any nondisclosure or confidentiality agreement signed or updated after May 11, 2016 must notify the employee or contractor of the DTSA whistleblower immunity under 18 U.S.C. § 1833(b). An employer that omits this notice loses the right to recover exemplary damages and attorney fees from that individual under the DTSA, even for willful misappropriation.

Can I bring both DTSA and Maryland trade secret claims in the same lawsuit?

Yes. The DTSA does not preempt Maryland's Uniform Trade Secrets Act (18 U.S.C. § 1838), so a trade secret owner may assert both claims together. Doing so provides access to the DTSA's civil ex parte seizure remedy while relying on the MUTSA's preemption of competing state tort claims (§ 11-1207). Both sets of claims share a three-year limitations period from discovery.