In my earlier 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 fifth of six alternative paths to liability under TUTSA:

v. 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 owed a duty to the person seeking relief to maintain the secrecy or limit the use of the trade secret [§ 134A.002 (3)(B)(ii)(c)]

Path five imposes liability on a person who discloses or uses trade secret information obtained from the person in path four—e.g., it imposes liability on the employer who discloses or uses the trade secrets obtained through the new employee who owed a duty to maintain the secrecy or limit the use of his or her former employer’s trade secret.