87-502. Terms, defined.

441 words·~2 min read·/ne/chapter-87/87-502

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

As used in the Trade Secrets Act, unless the context otherwise requires:

(1)Improper means shall mean theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means;

(2)Misappropriation shall mean:

(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 the disclosure or use, knew or had reason to know that his or her 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 or her position, knew or had reason to know that the information was a trade secret and that knowledge of it had been acquired by accident or mistake;

(3)Person shall mean a natural person, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity; and

(4)Trade secret shall mean information, including, but not limited to, a drawing, formula, pattern, compilation, program, device, method, technique, code, or process that:

(a)Derives independent economic value, actual or potential, from not being known to, and not being ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(b)Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Although Nebraska’s Trade Secrets Act is based on the Uniform Trade Secrets Act, Nebraska’s definition of a trade secret differs significantly from the uniform act. If an alleged trade secret is ascertainable at all by any means that are not “improper,” the would-be secret is peremptorily excluded from coverage under Nebraska’s act. First Express Servs. Group v. Easter, 286 Neb. 912, 840 N.W.2d 465 (2013).

Under this section, a recipe can be considered a trade secret. Magistro v. J. Lou, Inc., 270 Neb. 438, 703 N.W.2d 887 (2005).

A customer list can be included in the definition of a trade secret under this section. Home Pride Foods v. Johnson, 262 Neb. 701, 634 N.W.2d 774 (2001).