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Trade Secrets

HB 1995 – Amendments to the Texas Uniform Trade Secrets Act

  • House Bill 1995, filed by Rep. Gary Elkins (R - Houston), amends chapter 134A of the Civil Practice & Remedies Code (CPRC) (a/k/a Texas Uniform Trade Secrets Act (UTSA)) to:
  • (1) make the UTSA consistent with the Defend Trade Secrets Act of 1986 passed by Congress in May 2016;
  • (2) add a definition of “clear and convincing evidence” to be consistent with the same definition in other sections of the CPRC;
  • (3) add a definition of “willful and malicious appropriation” (using a 7th Circuit case for guidance); and
  • (4) codify concepts from the Texas Supreme Court’s 2016 decision in In re M-I LLC, which explored the tension between the rights of litigants to hear the evidence presented against them and a trade secret owner’s right to protect the confidentiality of its trade secrets during litigation.
  • The Governor signed the bill on May 19, 2017. The changes to the law addressed in the bill are effective September 1, 2017.

These are important changes to the current law which take effect in little over 90 days. If you have questions about your businesses trade secrets and their protection, we are here to help.