New York
New York Trade Secret Laws: Common Law & DTSA
New York is the only state in the United States that has not enacted a trade secret statute and has not adopted the Uniform Trade Secrets Act. Protection for confidential business information in New York rests entirely on common law, anchored by the six-factor test from Restatement of Torts § 757, comment b, as applied by New York courts. Claims must be brought within three years under CPLR § 214.
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 York trade secret law, consult a lawyer licensed in New York. See also our Trade Secret Laws by State hub for additional state guides.
Does New York have a trade secret law?
New York has never enacted a trade secret statute, making it unique among all fifty states. Trade secret protection in New York derives entirely from common law. New York courts have consistently recognized trade secret claims under principles drawn from the Restatement of Torts § 757 and its progeny. The leading New York authority is Ashland Management Inc. v. Janien, 82 N.Y.2d 395 (1993), in which the Court of Appeals confirmed that a trade secret in New York is "any formula, pattern, device or compilation of information which is used in one's business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." Courts apply the six Restatement comment b factors, described in the next section, to determine whether a specific item qualifies. Because there is no statute, there is also no codified preemption provision. Plaintiffs in New York may bring related claims for breach of contract, breach of fiduciary duty, or unfair competition alongside a trade secret claim, subject to the usual rules against duplicative recovery theories.
What counts as a trade secret under New York common law?
New York courts evaluate trade secret status by applying the six factors from Restatement of Torts § 757, comment b:
- The extent to which the information is known outside the claimant's business;
- The extent to which it is known to employees and others inside the business;
- The extent of measures taken to guard the secrecy of the information;
- The value of the information to the business and to its competitors;
- The amount of effort or money expended by the business in developing the information; and
- The ease or difficulty with which the information could be properly acquired or duplicated by others.
No single factor is determinative; courts weigh all six together. Information that scores poorly on most factors (for example, material widely known in the industry, unprotected by any confidentiality measures, and easily duplicated) is unlikely to qualify regardless of its commercial value to the owner. Courts have protected technical processes, formulas, source code, client lists containing non-public contact information, and business strategies that satisfy most of the six factors.
To succeed on a trade secret claim under New York law, the plaintiff must establish both that the information qualifies as a trade secret under the Restatement analysis AND that the defendant used or disclosed it either through breach of a confidential relationship or by improper means such as theft, bribery, or misrepresentation. Mere possession or exposure to the information is not enough; the manner of acquisition or use is a required element of the claim. Reverse engineering and independent development are not actionable.
Remedies and the limitations period in New York
Because New York trade secret law is common law, remedies flow from equity and tort principles rather than any statute:
- Injunctive relief: Courts of equity may enjoin actual or threatened misappropriation. A plaintiff seeking a preliminary injunction must show likelihood of success on the merits, irreparable harm, and a balance of equities in its favor.
- Compensatory damages: A prevailing plaintiff may recover actual losses caused by the misappropriation, including lost profits and diminished business value attributable to the wrongful disclosure or use.
- Disgorgement: Courts may require a defendant to disgorge profits gained through wrongful use of the trade secret, preventing unjust enrichment where compensatory damages do not fully make the plaintiff whole.
- Punitive damages: Available in New York tort claims when the defendant's conduct is particularly egregious; courts apply this remedy selectively in trade secret disputes and require a showing of intentional, malicious, or outrageous conduct.
The limitations period for a common-law trade secret claim in New York is three years, set by CPLR § 214, which governs actions to recover damages for injury to property. The period generally runs from the date of the misappropriating act. New York courts apply the discovery rule in circumstances where the plaintiff could not reasonably have known of the misappropriation earlier, but counsel should be consulted promptly because the accrual date can be contested and delay risks losing the claim.
How the federal DTSA applies in New York
Because New York has no trade secret statute, the federal Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, is especially significant for New York businesses. Since May 2016, the DTSA has provided a federal civil claim for misappropriation of trade secrets that relate to interstate or foreign commerce. The DTSA does not require any state statute (18 U.S.C. § 1838 preserves state law without conditioning DTSA access on state adoption of the UTSA), and New York plaintiffs may plead both common-law and DTSA claims in a single federal court action.
Key DTSA considerations for New York businesses include:
- A three-year federal limitations period from discovery (18 U.S.C. § 1836(d)), consistent with the three-year CPLR § 214 period, though accrual rules may differ in specific cases.
- Ex parte seizure orders to prevent further propagation of the secret in extraordinary circumstances (§ 1836(b)(2)), a tool not available under New York common law.
- Exemplary damages up to twice the compensatory award and attorney fees for willful and malicious misappropriation (§ 1836(b)(3)).
- 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 York trade secret law as of 2026-06-25. It is not legal advice. Laws can change; consult a lawyer licensed in New York before taking action based on this information.
Related articles
- Trade Secret Laws by State
- New Jersey Trade Secret Laws
- New Mexico Trade Secret Laws
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Last updated: 2026-06-25.
Frequently Asked Questions
Does New York have a trade secret statute?
No. New York is the only state in the United States that has not enacted a trade secret statute and has not adopted the Uniform Trade Secrets Act. Protection in New York is based entirely on common law, using the six-factor test from Restatement of Torts § 757, comment b, as applied by New York courts. The federal Defend Trade Secrets Act is available in federal court for New York businesses regardless of the absence of a state statute.
How does New York define a trade secret?
New York courts evaluate trade secret status using six factors from Restatement of Torts § 757, comment b: how widely the information is known outside the business; how widely it is known inside the business; what measures protect its secrecy; its value to the business and competitors; how much effort went into developing it; and how easily it could be duplicated by others. No single factor controls; courts weigh all six together. The information must also have been used or disclosed through a breach of confidence or by improper means to support a claim.
How long do I have to bring a trade secret claim in New York?
The limitations period for a common-law trade secret claim in New York is three years under CPLR § 214. The period generally starts from the date of the misappropriating act, though courts may apply the discovery rule when the plaintiff could not reasonably have discovered the misappropriation earlier. A parallel federal DTSA claim carries a three-year period from discovery. Acting promptly after discovering possible misappropriation preserves both avenues.
What remedies are available for trade secret misappropriation in New York?
Under New York common law, a prevailing plaintiff may obtain injunctive relief, compensatory damages for actual losses, and disgorgement of the defendant's profits. Punitive damages may be available for particularly egregious conduct. Under the federal DTSA, the plaintiff may also seek exemplary damages up to twice the compensatory award and attorney fees for willful and malicious misappropriation. The DTSA additionally allows ex parte seizure orders, which have no common-law equivalent in New York.
Should I use both a New York common-law claim and the federal DTSA?
In most cases, yes. Pleading both preserves all available remedies. The DTSA provides a statutory framework with exemplary damages, attorney fees, and ex parte seizure that New York common law does not explicitly supply. Common-law claims can support related theories such as breach of fiduciary duty or unfair competition that may survive even if the trade secret claim does not. New York counsel can advise on the optimal combination of claims for your situation.
Sources and References
- Restatement of Torts § 757, comment b (six-factor test adopted in Ashland Management Inc. v. Janien, 82 N.Y.2d 395 (1993))(nycourts.gov).gov
- New York Civil Practice Law and Rules § 214 (three-year limitations period)(nysenate.gov).gov
- Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839(law.cornell.edu)
- Economic Espionage Act, 18 U.S.C. §§ 1831-1832(law.cornell.edu)