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§ 134A.002.Definitions

Title 6. Miscellaneous Provisions · Chapter 134A. Trade Secrets · Last amended 2017 · Last verified August 29, 2026

In one sentenceSection 134A.002 defines trade secret, misappropriation, improper means and the related terms that set the whole scope of the Act.

Full Text of § 134A.002

Text sizeJump to: (a) (b) (c)

In this chapter:
(1)"Claimant" means a party seeking to recover damages under this chapter, including a plaintiff, counterclaimant, cross- claimant, or third-party plaintiff. In an action in which a party seeks recovery of damages under this chapter on behalf of another person, "claimant" includes both that other person and the party seeking recovery of damages.
(1-a)"Clear and convincing" means the measure or degree of proof that will produce in the mind of the trier of fact a firm belief or conviction as to the truth of the allegations sought to be established.
(2)"Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, to limit use, or to prohibit discovery of a trade secret, or espionage through electronic or other means.
(3)"Misappropriation" means:
(A)acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or
(B)disclosure or use of a trade secret of another without express or implied consent by a person who:
(i)used improper means to acquire knowledge of the trade secret;
(ii)at the time of disclosure or use, knew or had reason to know that the person's knowledge of the trade secret was:
(a)derived from or through a person who used improper means to acquire the trade secret;
(b)acquired under circumstances giving rise to a duty to maintain the secrecy of or limit the use of the trade secret; or
(c)derived from or through a person who owed a duty to the person seeking relief to maintain the secrecy of or limit the use of the trade secret; or
(iii)before a material change of the position of the person, knew or had reason to know that the trade secret was a trade secret and that knowledge of the trade secret had been acquired by accident or mistake.
(3-a)"Owner" means, with respect to a trade secret, the person or entity in whom or in which rightful, legal, or equitable title to, or the right to enforce rights in, the trade secret is reposed.
(4)"Proper means" means discovery by independent development, reverse engineering unless prohibited, or any other means that is not improper means.
(5)"Reverse engineering" means the process of studying, analyzing, or disassembling a product or device to discover its design, structure, construction, or source code provided that the product or device was acquired lawfully or from a person having the legal right to convey it.
(6)"Trade secret" means all forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if:
(A)the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret; and
(B)the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information.
(7)"Willful and malicious misappropriation" means intentional misappropriation resulting from the conscious disregard of the rights of the owner of the trade secret.
End

Plain-English Summary

The longest section in the chapter, and the one that decides most cases.

"Trade secret" is defined expansively — all forms and types of information, business, scientific, technical, economic or engineering, including a formula, design, prototype, pattern, plan, compilation, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, tangible or intangible, however stored — subject to two conditions that do all the limiting:

(A) the owner has taken reasonable measures under the circumstances to keep the information secret; and (B) the information derives independent economic value, actual or potential, from not being generally known to, and not readily ascertainable by proper means by, another person who can obtain economic value from it.

Condition (A) is where claims fail. Information a company treated casually — unmarked, widely circulated, not covered by any agreement — is not a trade secret however valuable it was.

"Misappropriation" has two branches: acquisition by someone who knows or has reason to know it was acquired by improper means; or disclosure or use without consent by someone in one of three described positions.

"Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, and espionage through electronic or other means.

"Proper means" is the mirror, and names reverse engineering — defined separately, and lawful provided the product was acquired lawfully. Independent development is likewise proper.

"Willful and malicious misappropriation" means intentional misappropriation resulting from conscious disregard of the rights of the owner, and it is the trigger for both exemplary damages and a fee award. "Owner" and "clear and convincing" are defined for those provisions.

Frequently Asked Questions

What is a trade secret in Texas?

Information of almost any kind, if the owner took reasonable measures to keep it secret and it derives independent economic value from not being generally known or readily ascertainable.

Are customer lists trade secrets?

They can be. A list of actual or potential customers or suppliers is named in the definition, but it still has to meet both conditions.

Is reverse engineering allowed?

Yes, unless prohibited, and provided the product was acquired lawfully. It is expressly a proper means.

What makes misappropriation wilful and malicious?

Intentional misappropriation resulting from conscious disregard of the owner’s rights. It is the trigger for exemplary damages and a fee award.

Amendment History

  • Added by Acts 2013, 83rd Leg., R.S., Ch. 10 (S.B. 953), Sec. 1, eff. September 1, 2013.
  • Amended by:
  • Acts 2017, 85th Leg., R.S., Ch. 37 (H.B. 1995), Sec. 1, eff. September 1, 2017.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source