Texas Trade Secret Laws: UTSA, Remedies & Deadlines

Texas enacted the Texas Uniform Trade Secrets Act (TUTSA) in 2013, codified at Tex. Civ. Prac. & Rem. Code §§ 134A.001 to 134A.008. The statute replaced prior common-law and Theft Liability Act remedies, sets a three-year limitations period from discovery (§ 16.010), and expressly authorizes a reasonable royalty as an alternative damages measure (§ 134A.004(a)).

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 specific to your situation, consult an attorney licensed in Texas and review the full Texas trade secret statute at Trade Secret Laws by State.

Does Texas have a trade secret law?

Texas enacted TUTSA in 2013, bringing the state in line with the UTSA framework used by most other states. The statute is codified at Tex. Civ. Prac. & Rem. Code §§ 134A.001 to 134A.008 and is available on the Texas Legislature's official website at statutes.capitol.texas.gov. Before TUTSA, Texas relied on common law and, in some circumstances, the Texas Theft Liability Act to address trade secret misappropriation. TUTSA displaced those remedies with a unified statutory scheme and preempts conflicting tort, restitution, and other state-law claims (§ 134A.007). The federal Defend Trade Secrets Act of 2016 (18 U.S.C. §§ 1836-1839) does not preempt TUTSA (18 U.S.C. § 1838), so both laws apply simultaneously to qualifying claims.

What counts as a trade secret and misappropriation in Texas?

Under Tex. Civ. Prac. & Rem. Code § 134A.002(6), a trade secret is information, including a formula, pattern, compilation, program, device, method, technique, process, financial data, or list of actual or potential customers or suppliers, that:

• 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; and
• is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Texas's definition tracks the standard UTSA language and expressly lists financial data and customer or supplier lists as examples of protectable information. The two-part test applies: the information must have economic value from secrecy AND the owner must take reasonable steps to maintain that secrecy. Misappropriation under § 134A.002(3) includes acquisition of another’s trade secret knowing or having reason to know it was acquired by improper means, or unauthorized disclosure or use by a person who used improper means to acquire the secret. Section 134A.002(3)(B) separately covers specified knowledge and secrecy-duty circumstances at disclosure or use, and accident-or-mistake cases involving knowledge or reason to know before a material change of position that the information was a trade secret and had been acquired by accident or mistake.

Section 134A.002(4) identifies independent development and reverse engineering unless prohibited as proper means. Under § 134A.002(5), reverse engineering requires a product or device acquired lawfully or from someone with the legal right to convey it. A contractual prohibition can therefore matter; the statute does not provide an unconditional reverse-engineering safe harbor.

Remedies and the limitations period in Texas

TUTSA authorizes injunctive relief to prevent actual or threatened misappropriation (§ 134A.003(a)). A court may condition continued use of a trade secret on payment of a reasonable royalty in exceptional circumstances, such as when an injunction would be inequitable (§ 134A.003(b)).

On damages, § 134A.004(a) provides the following damages measures:

1. Actual loss caused by the misappropriation and unjust enrichment not captured by actual loss.
2. In lieu of damages measured by other methods, a reasonable royalty for unauthorized disclosure or use of the trade secret (§ 134A.004(a)).

TUTSA provides injunctions, actual loss plus nonduplicative unjust enrichment or a reasonable royalty in lieu of other damages measures (§ 134A.004(a)). Clear and convincing proof of willful and malicious misappropriation permits additional exemplary damages up to twice that award, allowing total damages up to three times that award (§ 134A.004(b)). The court may award reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, a motion to terminate an injunction made or resisted in bad faith, or willful and malicious misappropriation (§ 134A.005).

The civil limitations period is three years from the date the claimant discovers, or by the exercise of reasonable diligence should have discovered, the misappropriation (Tex. Civ. Prac. & Rem. Code § 16.010). Texas does not deviate from the standard UTSA three-year period, but note the limitations rule sits in Chapter 16, not in TUTSA itself.

How the federal DTSA applies in Texas

The Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, creates a federal civil cause of action for misappropriation of trade secrets related to interstate or foreign commerce. Because it does not preempt state law (§ 1838), Texas businesses can plead both a TUTSA claim and a DTSA claim simultaneously, whether in state or federal court. The DTSA's three-year limitations period from discovery (§ 1836(d)) matches the TUTSA period, but the DTSA adds ex parte seizure orders (§ 1836(b)(2)) that TUTSA does not provide.

Employers must include a whistleblower-immunity notice in any confidentiality agreement, employment agreement, or similar contract signed or updated after May 11, 2016 (18 U.S.C. § 1833(b)(3)). The notice must state that an employee will not be held criminally or civilly liable for disclosing a trade secret to the government or an attorney in reporting a suspected legal violation. Omitting the notice does not void the underlying agreement but forfeits the employer's right to seek exemplary damages and attorney fees under the DTSA in any later action. Criminal trade secret theft may also be pursued under the federal Economic Espionage Act, 18 U.S.C. §§ 1831-1832.

This article presents general legal information as of 2026-06-25 and is not legal advice. Trade secret law is fact-intensive and outcomes depend on the specific circumstances of each case. Consult an attorney licensed in Texas before taking action to protect trade secrets or respond to a misappropriation claim.

Related articles

• Trade Secret Laws by State
• Tennessee Trade Secret Laws: UTSA, Remedies & Deadlines
• Utah Trade Secret Laws: UTSA, Remedies & Deadlines
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Last updated: 2026-06-25.

Frequently Asked Questions

What qualifies as a trade secret under Texas law?

Under TUTSA § 134A.002(6), qualifying information includes formulas, patterns, compilations, programs, devices, methods, techniques, processes, financial data, and lists of actual or potential customers or suppliers. The information must derive independent economic value from not being generally known or readily ascertainable and must be subject to reasonable secrecy efforts by the owner. Texas expressly includes financial data and customer and supplier lists, making the enumerated categories somewhat broader than some other state statutes.

How long does a business have to sue for trade secret misappropriation in Texas?

TUTSA sets a three-year limitations period, measured from the date the claimant discovers the misappropriation or, with reasonable diligence, should have discovered it (Tex. Civ. Prac. & Rem. Code § 16.010). A plaintiff who delays filing after the point of constructive discovery risks having the claim time-barred even if three calendar years have not yet run from the date of actual discovery. Prompt investigation after learning of potential misappropriation is important to preserve the claim.

What remedies does Texas provide in a trade secret case?

TUTSA provides injunctions, actual loss plus nonduplicative unjust enrichment or a reasonable royalty in lieu of other damages measures (§ 134A.004(a)). Clear and convincing proof of willful and malicious misappropriation permits additional exemplary damages up to twice that award, allowing total damages up to three times that award (§ 134A.004(b)). The court may award reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, a motion to terminate an injunction made or resisted in bad faith, or willful and malicious misappropriation (§ 134A.005).

How do NDAs and reasonable measures protect trade secrets in Texas?

TUTSA requires that a trade secret owner maintain efforts that are reasonable under the circumstances to protect secrecy (§ 134A.002(6)). Non-disclosure agreements are a primary protective measure, but courts also look at physical security, access restrictions, employee training, and confidentiality markings on documents. Consistent enforcement of an NDA program signals reasonable efforts; a business that allows widespread internal access without restriction may struggle to establish that the information qualifies as a trade secret.

How does the federal DTSA interact with Texas's TUTSA?

The DTSA provides a federal civil claim when the trade secret relates to interstate or foreign commerce and does not preempt TUTSA (18 U.S.C. § 1838). Plaintiffs often plead both claims to access federal court jurisdiction and DTSA-specific remedies, including ex parte seizure orders. Post-May 11, 2016 confidentiality agreements must include a whistleblower-immunity notice (18 U.S.C. § 1833(b)(3)); omitting it forfeits DTSA exemplary damages and attorney fees.