In my July 16 and Sept 25 posts, I explored the complicated definition of “misappropriation” under the Texas Uniform Trade Secret Act (TUTSA).  Litigants and courts often fail to understand all the ways a trade secret may be misappropriated.  In this post, I explore the third of six alternative paths to liability under TUTSA:

iii. Disclosure or use of a trade secret of another without express or implied consent by a person who, at the time of disclosure or use, knew or had reason to know that the person’s knowledge of the trade secret was derived from or through a person who used improper means to acquire it [§ 134A.002 (3)(B)(ii)(a)]

Path three is similar to path two, but it imposes liability on defendants who are further removed from the improper means of acquisition.  Under path three, the employer who discloses or uses the new employee’s information is liable if the employer knew or had reason to know that the new employee utilized improper means to obtain the trade secret.