As used in this chapter, unless the context requires otherwise:

"Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

"Misappropriation" means:

1. (1) 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

2. (2) Disclosure or use of a trade secret of another without express or implied consent by a person who:

   1. (A) Used improper means to acquire knowledge of the trade secret; or
   2. (B) At the time of disclosure or use, knew or had reason to know that the person's knowledge of the trade secret was:
   3. (i) Derived from or through a person who had utilized improper means to acquire it;
   4. (ii) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or
   5. (iii) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

   6. (C) Before a material change of the person's position, knew or has reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

      "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

      "Trade secret" means information, including a formula, pattern, compilation, program device, method, technique, or process that:

   7. (1) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and
   8. (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

[L 1989, c 221, pt of §1]

Case Notes

A contact list, as alleged by plaintiff, is similar to a customer list, which courts generally find to be protected as a trade secret. 780 F. Supp. 2d 1061 (2011).

Improper retention and use of confidential information to solicit proposed funding qualifies as misappropriation of a trade secret as contemplated by this chapter. 780 F. Supp. 2d 1061 (2011).

Under the federal Defend Trade Secrets Act and the Hawaii Uniform Trade Secrets Act, plaintiff, a drug testing services provider, was granted a preliminary injunction against defendants, a competitor and former employees; where plaintiff had lost at least six clients to defendants due to their misappropriation of client information, which was a protected trade secret, as well as lying to clients about plaintiff's viability and loss of accreditation. Plaintiff lost, and would continue to lose, goodwill in the eyes of its clients and was likely to suffer irreparable harm in the absence of preliminary relief. 341 F. Supp. 3d 1147 (2018).

Trade secrets may be subject to equitable division pursuant to §580-47, depending upon when the right to the trade secret vested. 99 H. 101, 53 P.3d 240.