Are there any exceptions to trade secret protection?
Yes, there are exceptions to trade secret protection in Texas. Generally, trade secrets cannot be acquired illegitimately, meaning information sourced from reverse engineering, independent discovery or breach of a confidential relationship is not protected. A trade secret must have commercial value that is not known to the public, and reasonable efforts must have been taken to maintain its secrecy. Trade secrets are also not protected if they have been voluntarily disclosed to the public, including through the use of an open source license. Furthermore, trade secrets are not protected if the trade secrets are not sufficiently complex or innovative, or are known to the public or within an industry. In addition, Texas statutes provide that trade secrets are not protected if they have been publicly disclosed by a third party who did not obtain information from the trade secret holder, or if they have been disclosed in violation of a fiduciary duty or other contractual obligation. Finally, the government may use or disclose trade secrets without liability if the trade secret is obtained in connection with a criminal law enforcement investigation.
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