Bill No.: HB0095 Drafter: LGC

LSO No.: 06LSO-0408 Effective Date: 7/1/2006

Enrolled Act No.: HEA0031

Chapter No.: 63

Prime Sponsor: Representative Simpson

Catch Title: Trade secrets.

Subject: Adopts the Uniform Trade Secrets Act

Summary/Major Elements:

• The Uniform Trade Secrets Act is a model law drafted by the National Conference of Commissioners on Uniform State Laws to better define rights and remedies under common law.

• The act defines a trade secret as "information, including a formula, pattern, compilation, program device, method, technique, or process, that: (i) 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 (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."

• The act outlines a number of remedies for violation of trade secrets including injunctions, damages and attorney's fees.

• The act also permits courts to grant protective orders to ensure the secrecy of a trade secret during discovery and to prevent disclosure by witnesses. In addition, the act authorizes in camera hearings to take testimony.