New Mexico
New Mexico Trade Secret Laws: UTSA, Remedies & Deadlines
New Mexico protects confidential business information under the New Mexico Uniform Trade Secrets Act (NMUTSA), N.M. Stat. §§ 57-3A-1 to 57-3A-7, adopted in 1989. The NMUTSA closely tracks the national Uniform Trade Secrets Act model and provides a three-year limitations period measured from discovery of the misappropriation.
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 New Mexico trade secret law, consult a lawyer licensed in New Mexico. See also our Trade Secret Laws by State hub for additional state guides.
Does New Mexico have a trade secret law?
New Mexico enacted the New Mexico Uniform Trade Secrets Act in 1989, codified at N.M. Stat. §§ 57-3A-1 to 57-3A-7. The NMUTSA is directly modeled on the Uniform Trade Secrets Act developed by the Uniform Law Commission, giving New Mexico businesses protections that are largely consistent with those available in most other UTSA states. Under N.M. Stat. § 57-3A-7, the NMUTSA displaces conflicting tort, restitution, and other civil claims based on misappropriation of a trade secret, while leaving intact contractual obligations, criminal law, and civil remedies not based on misappropriation. New Mexico courts have applied the NMUTSA across a variety of business contexts, from technology companies protecting source code to employers protecting client relationships and proprietary pricing information.
What counts as a trade secret and misappropriation in New Mexico?
Under N.M. Stat. § 57-3A-2, a trade secret is information, including a formula, pattern, compilation, program, device, method, technique, or process, that meets two requirements:
- It derives 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.
- It is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
The definition broadly covers technical and commercial information alike. Commonly protected items include software algorithms, manufacturing processes, proprietary pricing models, supplier and customer lists, and internal business strategies, provided both the secrecy and reasonable-measures elements are satisfied. Courts look at the totality of measures a business employs: written agreements, digital access controls, limited internal distribution, and physical security measures all contribute to establishing that reasonable efforts were made.
Under N.M. Stat. § 57-3A-2, misappropriation means acquiring a trade secret through improper means, or disclosing or using a trade secret without consent by someone who acquired it through improper means, owed a duty to maintain secrecy, or knew the secret was acquired through breach of a duty. Improper means include theft, bribery, misrepresentation, breach of a duty to maintain secrecy, and industrial espionage. Reverse engineering and independent development are expressly lawful under the NMUTSA.
Remedies and the limitations period in New Mexico
The NMUTSA provides the following remedies:
- Injunction: Under N.M. Stat. § 57-3A-3, courts may enjoin actual or threatened misappropriation. An injunction may allow continued use conditioned on payment of a reasonable royalty when an absolute prohibition would be inequitable.
- Damages: Under N.M. Stat. § 57-3A-4, a plaintiff may recover actual loss caused by misappropriation plus unjust enrichment not accounted for by actual loss. If neither measure is provable, courts may award a reasonable royalty for the period of unauthorized use.
- Exemplary damages: Willful and malicious misappropriation supports an award of up to twice the compensatory damages (N.M. Stat. § 57-3A-4).
- Attorney fees: Available when misappropriation is proven to be willful and malicious, or when a claim or defense is asserted in bad faith (N.M. Stat. § 57-3A-5).
The limitations period in New Mexico is three years from the date the misappropriation was discovered or, by the exercise of reasonable diligence, should have been discovered (N.M. Stat. § 57-3A-6). This matches the standard UTSA period. New Mexico courts apply the discovery rule: the period begins when the plaintiff knew or reasonably should have known of the misappropriation, not when the harm is fully quantifiable.
How the federal DTSA applies in New Mexico
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 products or services used in interstate or foreign commerce. The DTSA does not preempt the NMUTSA (18 U.S.C. § 1838), and New Mexico plaintiffs routinely plead both statutes in federal court actions to access federal jurisdiction while preserving state remedies.
Key DTSA considerations for New Mexico businesses include:
- A three-year federal limitations period from discovery (18 U.S.C. § 1836(d)), which matches the NMUTSA period, so state and federal deadlines align.
- Ex parte seizure orders to prevent dissemination of the secret in extraordinary circumstances (§ 1836(b)(2)).
- Exemplary damages and attorney fees for willful and malicious misappropriation, parallel to New Mexico state remedies.
- Whistleblower immunity: the DTSA immunizes individuals who disclose trade secrets to government officials or attorneys in connection with a suspected legal violation (§ 1833(b)(1)). Employers must include notice of this immunity in confidentiality or non-disclosure agreements signed or updated after May 11, 2016 (§ 1833(b)(3)). Omitting the notice forfeits the right to claim exemplary damages and attorney fees under the DTSA.
Federal criminal exposure may also arise under the Economic Espionage Act, 18 U.S.C. §§ 1831-1832, for trade secret theft tied to foreign governments or interstate and foreign commerce.
This article provides general legal information about New Mexico trade secret law as of 2026-06-25. It is not legal advice. Laws can change; consult a lawyer licensed in New Mexico before taking action based on this information.
Related articles
- Trade Secret Laws by State
- New Jersey Trade Secret Laws
- New York Trade Secret Laws
- Is AI-generated code copyright infringement?
Last updated: 2026-06-25.
Frequently Asked Questions
What qualifies as a trade secret under New Mexico law?
Under N.M. Stat. § 57-3A-2, a trade secret is information of any type that derives independent economic value from not being generally known or readily ascertainable by those who could profit from it, and that the owner protects through reasonable efforts to maintain secrecy. Examples include formulas, software code, manufacturing processes, business plans, customer databases, and pricing strategies. Both elements must be satisfied: economic value from secrecy and actual protective measures.
How long do I have to sue for trade secret misappropriation in New Mexico?
New Mexico provides three years from the date the misappropriation was discovered or, through reasonable diligence, should have been discovered (N.M. Stat. § 57-3A-6). This matches the standard UTSA limitations period. A parallel DTSA federal claim also carries a three-year discovery period, so state and federal deadlines align. Prompt action after discovering possible misappropriation is advisable, as gathering evidence becomes more difficult over time.
What damages are available in a New Mexico trade secret case?
Prevailing plaintiffs under the NMUTSA may recover actual loss caused by the misappropriation plus unjust enrichment not already captured by actual loss, or a reasonable royalty when damages are not readily provable. Willful and malicious misappropriation can yield exemplary damages up to twice the compensatory award. Attorney fees are available for bad-faith claims or defenses and for willful and malicious misappropriation. Courts may also issue injunctions to stop ongoing or threatened misappropriation.
Are NDAs and confidentiality agreements important for trade secret protection in New Mexico?
Yes. Non-disclosure and confidentiality agreements are strong evidence of the reasonable-measures requirement under N.M. Stat. § 57-3A-2. Agreements alone are not sufficient, however, if the underlying information does not independently derive value from its secrecy. A comprehensive protection program typically combines written agreements with access controls, marking of confidential materials, and consistent enforcement of confidentiality policies.
Can I bring both a New Mexico UTSA claim and a federal DTSA claim at the same time?
Yes. The DTSA expressly does not preempt state trade secret law (18 U.S.C. § 1838), so both claims may be pleaded simultaneously. Filing both provides access to federal court, DTSA-specific tools such as ex parte seizure, and the full range of New Mexico remedies. The limitations periods are the same under both statutes, which simplifies timing. Consult a New Mexico attorney to evaluate the best forum and claims for your situation.
Sources and References
- New Mexico Uniform Trade Secrets Act, N.M. Stat. §§ 57-3A-1 to 57-3A-7(nmonesource.com)
- 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)