US · contractsSources checked
What does US law require to protect information as a trade secret?
Under 18 U.S.C. 1839(3), information is a trade secret only if the owner has taken reasonable measures to keep it secret, and the information derives independent economic value, actual or potential, from not being generally known to, and not readily ascertainable through proper means by, another person who could obtain economic value from its disclosure or use. Both conditions must be met.
Sources
- 18 U.S.C. 1839 (Protection of Trade Secrets, Definitions)govinfo.gov (U.S. Government Publishing Office) · checked 17 August 2026 · United States Code, 2023 edition, as published by GPO.
Related questions
- Does signing an NDA satisfy the reasonable measures requirement?
- The statute requires reasonable measures without naming any particular document, so what counts as reasonable depends on the circumstances rather than on any one agreement being in place.
- Is reverse engineering a trade secret unlawful?
- Section 1839(6) states that improper means does not include reverse engineering, independent derivation, or any other lawful means of acquisition.
What this answer does not cover
- This is the federal definition. States also have their own trade secret laws, which this page does not cover.
- Whether a specific set of precautions amounts to reasonable measures is a question of fact, not something this page decides.
