Texas
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)(2)).
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) means acquisition by improper means, or disclosure or use without consent by a person who knew or had reason to know the secret was obtained improperly, under a duty to maintain secrecy, or by accident or mistake under circumstances giving rise to a duty.
Reverse engineering and independent development are not misappropriation (§ 134A.002(3)(B)(ii)). A competitor who lawfully analyzes a product or independently conceives the same process has not violated TUTSA.
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 three alternative measures:
- Actual loss caused by the misappropriation and unjust enrichment not captured by actual loss.
- If neither (1) is provable, a reasonable royalty for the unauthorized use of the trade secret (§ 134A.004(a)(2)).
Texas expressly includes the reasonable royalty as a standalone alternative, which gives plaintiffs an avenue to recover even when quantifying actual loss or unjust enrichment is difficult. Willful and malicious misappropriation can result in exemplary damages up to two times the compensatory award (§ 134A.004(b)). Attorney fees are available to the prevailing party when a claim, motion, or defense was made in bad faith, or when willful and malicious misappropriation was established (§ 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
- Is AI-generated code copyright infringement?
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 authorizes injunctive relief, actual damages plus unjust enrichment, or a reasonable royalty if other damages are not provable. Texas expressly provides the reasonable royalty as an alternative measure in § 134A.004(a)(2). Willful and malicious misappropriation can result in exemplary damages up to twice the compensatory award, and attorney fees may be awarded for bad-faith claims or willful-and-malicious misappropriation (§§ 134A.004 to 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.
Sources and References
- Texas Uniform Trade Secrets Act, Tex. Civ. Prac. & Rem. Code §§ 134A.001 to 134A.008(statutes.capitol.texas.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)