In January 2012, New Jersey enacted the New Jersey Trade Secrets Act (NJTSA), N.J.S.A. 56:15-1 et seq., based on the Uniform Trade Secrets Act (UTSA). Under the New Jersey statute, it is not a defense to a misappropriation claim that “proper means to acquire the trade secret existed” at the time a trade secret was misappropriated (N.J.S.A. 56:15-5). However, proof that stolen information was, or could have been, reverse engineered may be a defense to whether it was a “trade secret” in the first place.
Reverse Engineering
The NJTSA defines a trade secret as having been “subject to efforts that are reasonable under the circumstances to maintain its secrecy,” and having “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.” N.J.S.A. 56:15-2. “Proper means” includes reverse engineering.
