Pennsylvania Uniform Trade Secrets Act (PUTSA)

12 PS § 5301 Pa CHAPTER 53
                              TRADE SECRETS

     Sec.
     5301.  Short title of chapter.
     5302.  Definitions.
     5303.  Injunctive relief.
     5304.  Damages.
     5305.  Attorney fees.
     5306.  Preservation of secrecy.
     5307.  Statute of limitations.
     5308.  Effect on other law.

        Enactment.  Chapter 53 was added February 19, 2004, P.L.143,
     No.14, effective in 60 days.
        Special Provisions in Appendix.  See sections 3 and 4 of Act
     14 of 2004 in the appendix to this title for special provisions
     relating to construction and application of law and
     misappropriations occurring prior to Act 14.
     § 5301.  Short title of chapter.
        This chapter shall be known and may be cited as the Uniform
     Trade Secrets Act.
     § 5302.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Improper means."  Includes, but is not limited to, theft,
     bribery, misrepresentation, breach or inducement of a breach of
     a duty to maintain secrecy or espionage through electronic or
     other means.
        "Misappropriation."  Includes:
            (1)  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
            (2)  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 his knowledge of the trade secret
            was:
                    (A)  derived from or through a person who had
                utilized improper means to acquire it;
                    (B)  acquired under circumstances giving rise to
                a duty to maintain its secrecy or limit its use; or
                    (C)  derived from or through a person who owed a
                duty to the person seeking relief to maintain its
                secrecy or limit its use; or
                (iii)  before a material change of his position, knew
            or had reason to know that it was a trade secret and that
            knowledge of it had been acquired by accident or mistake.
        "Person."  A natural person, corporation, business trust,
     estate, trust, partnership, association, joint venture,
     government, governmental subdivision or agency or any other
     legal or commercial entity.
        "Trade secret."  Information, including a formula, drawing,
     pattern, compilation including a customer list, program, device,
     method, technique or process that:
            (1)  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.
            (2)  Is the subject of efforts that are reasonable under
        the circumstances to maintain its secrecy.
        "Willful and malicious."  Such intentional acts or gross
     neglect of duty as to evince a reckless indifference of the
     rights of others on the part of the wrongdoer, and an entire
     want of care so as to raise the presumption that the person at
     fault is conscious of the consequences of his carelessness.
     § 5303.  Injunctive relief.
        (a)  Injunctions.--Actual or threatened misappropriation may
     be enjoined. Upon application to the court, an injunction shall
     be terminated when the trade secret has ceased to exist, but the
     injunction may be continued for an additional reasonable period
     of time in order to eliminate commercial advantage that
     otherwise would be derived from the misappropriation.
        (b)  Exceptional circumstances.--In exceptional
     circumstances, an injunction may condition future use upon
     payment of a reasonable royalty for no longer than the period of
     time for which use could have been prohibited. Exceptional
     circumstances include, but are not limited to, a material and
     prejudicial change of position prior to acquiring knowledge or
     reason to know of misappropriation that renders a prohibitive
     injunction inequitable.
        (c)  Affirmative acts compelled by court order.--In
     appropriate circumstances, affirmative acts to protect a trade
     secret may be compelled by court order.
     § 5304.  Damages.
        (a)  Monetary damages.--Except to the extent that a material
     and prejudicial change of position prior to acquiring knowledge
     or reason to know of misappropriation renders a monetary
     recovery inequitable, a complainant is entitled to recover
     damages for misappropriation. Damages can include both the
     actual loss caused by misappropriation and the unjust enrichment
     caused by misappropriation that is not taken into account in
     computing actual loss. In lieu of damages measured by any other
     methods, the damages caused by misappropriation may be measured
     by imposition of liability for a reasonable royalty for a
     misappropriator's unauthorized disclosure or use of a trade
     secret.
        (b)  Exemplary damages.--If willful and malicious
     misappropriation exists, the court may award exemplary damages
     in an amount not exceeding twice any award made under subsection
     (a).
     § 5305.  Attorney fees.
        A court may award reasonable attorney fees, expenses and
     costs to the prevailing party:
            (1)  if a claim of misappropriation is made in bad faith;
            (2)  a motion to terminate an injunction is made or
        resisted in bad faith; or
            (3)  willful and malicious misappropriation exists.
     § 5306.  Preservation of secrecy.
        In any action under this chapter, a court shall preserve the
     secrecy of an alleged trade secret by reasonable means which may
     include, but are not limited to, granting protective orders in
     connection with discovery proceedings, holding in camera
     hearings, sealing the records of the action and ordering any
     person involved in the litigation not to disclose an alleged
     trade secret without prior court approval.
     § 5307.  Statute of limitations.
        An action under this chapter for misappropriation must be
     brought within three years after the misappropriation was
     discovered or by the exercise of reasonable diligence should
     have been discovered.
     § 5308.  Effect on other law.
        (a)  General rule.--Except as provided in subsection (b),
     this chapter displaces conflicting tort, restitutionary and
     other law of this Commonwealth providing civil remedies for
     misappropriation of a trade secret.
        (b)  Exceptions.--This chapter does not affect:
            (1)  contractual remedies, whether or not based upon
        misappropriation of a trade secret;
            (2)  other civil remedies that are not based upon
        misappropriation of a trade secret; or
            (3)  criminal remedies, whether or not based upon
        misappropriation of a trade secret.