Nebraska
Nebraska Trade Secret Laws: UTSA, Remedies & Deadlines
Nebraska enacted the Nebraska Trade Secrets Act, Neb. Rev. Stat. §§ 87-501 to 87-507, in 1988, adopting a version of the Uniform Trade Secrets Act as its civil framework for protecting commercially valuable confidential information. Claims for misappropriation must be filed within three years of discovery under § 87-507.
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 full overview of trade secret protections across the country, see Trade Secret Laws by State.
Does Nebraska have a trade secret law?
Nebraska enacted the Nebraska Trade Secrets Act (NTSA) in 1988, codified at Neb. Rev. Stat. §§ 87-501 to 87-507. The statute follows the framework of the Uniform Law Commission's Uniform Trade Secrets Act, providing a comprehensive civil remedy for the acquisition, disclosure, or use of trade secrets by improper means or in breach of a confidentiality obligation. Nebraska courts apply the NTSA to a broad range of commercially sensitive information, from proprietary manufacturing processes to customer databases, provided the information meets the statute's two-part definitional test. Federal criminal liability under the Economic Espionage Act, 18 U.S.C. §§ 1831-1832, supplements the civil framework for egregious theft of trade secrets.
What counts as a trade secret in Nebraska?
Section 87-501(4) of the Nebraska Revised Statutes defines a trade secret as information, including a formula, pattern, compilation, program, device, method, technique, or process, that satisfies two conditions.
First, the information must derive 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.
Second, the information must be the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Both conditions are conjunctive: a holder who cannot satisfy either requirement cannot claim trade-secret protection. Misappropriation under § 87-501(2) means acquisition by improper means (theft, bribery, misrepresentation, espionage, or inducing a breach of a duty to maintain secrecy) or disclosure and use without consent by someone who knew or had reason to know the secret was obtained improperly or through breach of a duty.
Reverse engineering and independent development are expressly lawful. A competitor who discovers the same information through legitimate research has not misappropriated it under the NTSA.
Remedies and the limitations period in Nebraska
Section 87-502 authorizes courts to issue injunctions to prevent actual or threatened misappropriation. An injunction may extend beyond the period during which the misappropriated information retains secrecy to eliminate any commercial advantage the misappropriator obtained. When an injunction would be unreasonably burdensome or inequitable, a court may condition continued use on payment of a reasonable royalty.
Section 87-503 governs damages. A claimant may recover (a) actual loss caused by the misappropriation plus unjust enrichment not already reflected in the actual-loss award, or (b) a reasonable royalty for the unauthorized use. When misappropriation is willful and malicious, a court may award exemplary damages in an amount not exceeding twice the compensatory damages.
Section 87-504 allows the prevailing party to recover attorney fees when a claim or defense was made in bad faith, or when willful and malicious misappropriation is established.
The limitations period under § 87-507 is three years, measured from when the misappropriation was discovered or reasonably should have been discovered through the exercise of reasonable diligence. Nebraska did not deviate from the UTSA's standard three-year window.
How the federal Defend Trade Secrets Act applies in Nebraska
The federal Defend Trade Secrets Act (DTSA), 18 U.S.C. §§ 1836-1839, became effective May 11, 2016, and created a federal civil cause of 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. That threshold is easily satisfied by most Nebraska business information.
Because the DTSA does not preempt state law (18 U.S.C. § 1838), Nebraska claimants regularly plead both NTSA and DTSA claims in a single action, preserving access to both state courts and a federal forum.
Key DTSA features that supplement Nebraska state law include:
- Ex parte seizure: Federal courts may order immediate seizure of property to prevent dissemination of a trade secret in extraordinary circumstances (18 U.S.C. § 1836(b)(2)).
- Whistleblower immunity: An individual who discloses a trade secret to a government official or attorney solely to report a suspected legal violation is immune from DTSA liability (18 U.S.C. § 1833(b)). Employers using confidentiality agreements must include notice of this immunity in any agreement signed or materially updated after May 11, 2016, or forfeit the right to seek exemplary damages and attorney fees under the DTSA.
- Three-year federal limitations period: The DTSA carries its own three-year limitations period from discovery (18 U.S.C. § 1836(d)), which aligns with Nebraska's three-year state period.
Protecting trade secrets in Nebraska: practical steps
Under the Nebraska Trade Secrets Act, reasonable secrecy measures are a definitional requirement, and Nebraska courts examine whether a holder's protective efforts were proportionate to the value and sensitivity of the information. Steps recognized as relevant to establishing trade-secret status include:
- Written confidentiality and non-disclosure agreements with employees, contractors, and business partners, updated after May 11, 2016, to include the DTSA whistleblower-immunity notice
- Password protection, encryption, and role-based access controls limiting digital file access to personnel who need it
- Physical security measures for facilities or storage areas containing sensitive documents or prototypes
- Consistent and systematic confidentiality markings on documents, presentations, and data files
- Structured employee departure protocols covering device return, system-access revocation, and written reminders of continuing confidentiality obligations
Inconsistent treatment of information can undermine trade-secret status. If a company shares information freely in some relationships while claiming secrecy in others, Nebraska courts may find the reasonable-secrecy-efforts element unsatisfied.
This article presents general legal information as of 2026-06-25 and is not legal advice. Laws change, and individual circumstances vary. Consult a lawyer licensed in Nebraska for guidance on your specific situation.
Related articles
- Trade Secret Laws by State
- Minnesota Trade Secret Laws
- Nevada Trade Secret Laws
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Last updated: 2026-06-25.
Frequently Asked Questions
What information qualifies as a trade secret under Nebraska law?
Under Neb. Rev. Stat. § 87-501(4), information qualifies if it derives independent economic value from not being generally known or readily ascertainable by those who could benefit from it, and if the holder has taken reasonable efforts to maintain its secrecy. Both requirements must be satisfied. Common examples include manufacturing processes, customer lists, pricing strategies, and proprietary software, provided genuine secrecy measures are actually in place.
How long does a Nebraska trade secret owner have to file a lawsuit?
Nebraska law provides a three-year limitations period under § 87-507, measured from when the misappropriation was discovered or reasonably should have been discovered through the exercise of reasonable diligence. Claims filed outside that window are generally time-barred. Because the discovery clock may start before the full scope of the misappropriation is apparent, consulting a Nebraska attorney promptly after suspecting a breach is advisable.
What remedies are available in a Nebraska trade secret case?
Courts may grant injunctions and award actual loss plus unjust enrichment, or a reasonable royalty. When misappropriation is willful and malicious, exemplary damages of up to twice the compensatory award are available under § 87-503. Attorney fees may be granted when a claim or defense was made in bad faith, or when willful and malicious misappropriation is established. Federal DTSA remedies, including ex parte seizure, are available concurrently.
Are NDAs required to protect trade secrets in Nebraska?
NDAs are not required by the Nebraska Trade Secrets Act, but they are a significant protective tool. A written NDA helps establish the reasonable-efforts element of the trade-secret definition and may support both a contract claim and an NTSA misappropriation claim if violated. Any NDA executed after May 11, 2016, should include the DTSA whistleblower-immunity notice to preserve access to federal exemplary damages and attorney fees.
Can a Nebraska plaintiff bring both state and federal trade secret claims?
Yes. The federal DTSA expressly does not preempt Nebraska's state law, so a claimant may plead both NTSA and DTSA claims in the same action. The federal claim provides access to ex parte seizure relief and a federal forum. Both frameworks carry three-year limitations periods measured from discovery, and both authorize injunctions, actual damages or a reasonable royalty, and exemplary damages for willful and malicious conduct.
Sources and References
- Nebraska Trade Secrets Act, Neb. Rev. Stat. §§ 87-501 to 87-507(nebraskalegislature.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)