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Trade Secret Litigation Archives

Customer Lists and the Texas Uniform Trade Secrets Act

Customer lists are important assets for companies. They provide crucial leads, a history of consumers' purchases, and other important data. Before the enactment of the Texas Uniform Trade Secrets Act, determining whether a customer list met the definition of a trade secret was complicated and required a heavily factual analysis. However, when the Texas Legislature enacted the Texas Uniform Trade Secrets Act (TUTSA) in 2013, it was clear that the legislature considered customer lists trade secrets. TUTSA defined trade secrets as "information, including...list[s] of actual or potential customers." Tex. Civ. Prac. & Rem. Code § 134A.002 (6). Despite this clear inclusion as information worth protecting, customer lists must still meet the requirement of including information that is not "readily ascertainable" to be considered a trade secret. Tex. Civ. Prac. & Rem. Code § 134A.002 (6) (A).This blog will look at what information should be included in your customer list to ensure it qualifies as a trade secret and two exceptions to the "not readily ascertainable" requirement.

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