Senate Bill No. 50–Committee on Judiciary

 

CHAPTER..........

 

AN ACT relating to trade secrets; providing that a trade secret which is misappropriated and posted on the Internet remains a trade secret under certain circumstances; authorizing a court to issue an order or injunction requiring the immediate removal of a misappropriated trade secret from the Internet; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1.  Chapter 600A of NRS is hereby amended by adding

 thereto a new section to read as follows:

   A trade secret that is misappropriated and posted, displayed or

 otherwise disseminated on the Internet shall be deemed to remain a

 trade secret as defined in NRS 600A.030 and not to have “ceased to

 exist” for the purposes of subsection 1 of NRS 600A.040 if:

   1.  The owner, within a reasonable time after discovering that the

 trade secret has been misappropriated and posted, displayed or otherwise

 disseminated on the Internet, obtains an injunction or order issued by a

 court requiring that the trade secret be removed from the Internet; and

   2.  The trade secret is removed from the Internet within a reasonable

 time after the injunction or order requiring removal of the trade secret is

 issued by the court.

   Sec. 2.  NRS 600A.040 is hereby amended to read as follows:

   600A.040  1.  Actual or threatened misappropriation may be enjoined.

 Upon application to the court, an injunction must be terminated when the

 trade secret has ceased to exist, but the injunction may be continued for an

 additional reasonable period of time to eliminate commercial or other

 advantage that otherwise would be derived from the misappropriation.

   2.  In exceptional circumstances, an injunction may condition future

 use upon payment of a reasonable royalty for no longer than the period of

 time for which use could have been prohibited. Exceptional circumstances

 include a material and prejudicial change of position before acquiring

 knowledge or reason to know of misappropriation that renders a

 prohibitive injunction inequitable.

   3.  In appropriate circumstances, the court may order affirmative acts to

 protect a trade secret. As used in this subsection, “affirmative acts”

 includes, without limitation, issuing an injunction or order requiring

 that a trade secret which has been misappropriated and posted, displayed

 or otherwise disseminated on the Internet be removed from the Internet

 immediately.

 

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