Trade Secret Theft in Nevada's Tech Corridor: NRS 600A Explained

A former employee at a Reno-based data analytics company downloaded 12,000 files to a personal USB drive on his last day. Three weeks later, he launched a competing business in the Reno-Sparks tech corridor, using the same customer lists, pricing models, and proprietary algorithms he’d taken. The former employer didn’t discover the theft for two months. By then, the new company had already signed three of their largest accounts.

I took that case. We won.

I’m Evan Dotta, a partner at Mister Wolf, P.C. As a Nevada intellectual property lawyer, I handle trade secret litigation for clients in California and Nevada. Nevada’s tech sector has grown rapidly over the past decade, concentrated along the Reno-Sparks corridor and increasingly in the Las Vegas tech ecosystem. The risks look familiar. Same patterns you see in Silicon Valley, but the rules are different here.

Below is Nevada’s intellectual property law governing trade secrets under NRS 600A, how it interacts with the federal Defend Trade Secrets Act, and what to do if an employee walks out of your Nevada office with proprietary information.

What Counts as a Trade Secret Under Nevada Law?

The NRS 600A.030 Definition

Nevada’s Uniform Trade Secrets Act lives in NRS Chapter 600A. The statute defines a trade secret under NRS 600A.030 as information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

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
2. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy

Both prongs must be satisfied. You can have the most valuable algorithm in the world, but if you posted it on a public GitHub repository or shared it without an NDA, it’s not a trade secret.

What Nevada Courts Have Protected

The District of Nevada and Nevada state courts have recognized trade secrets in:

• Customer lists with pricing, purchase history, and contact details
• Proprietary software source code and algorithms
• Manufacturing processes and chemical formulations
• Marketing strategies and competitive analyses
• Financial projections and business plans
• Employee compensation data and hiring strategies
• Technical specifications and engineering designs
• Supplier relationships and vendor pricing agreements

The specificity requirement matters. Saying “everything we do is a trade secret” won’t work. You need to identify each piece of information, explain its economic value, and prove what steps you took to keep it confidential. Judges in the District of Nevada have dismissed claims lacking this specificity.

What Makes Trade Secret Misappropriation Under NRS 600A.035?

The Legal Definition

NRS 600A.035 defines misappropriation in two ways:

Acquisition of a trade secret by a person who knows or has reason to know that the trade secret was acquired by improper means. Improper means include theft, bribery, misrepresentation, breach of a duty to maintain secrecy, and espionage through electronic or other means.

Disclosure or use of a trade secret without consent by a person who used improper means to acquire it, acquired it under circumstances giving rise to a duty to maintain its secrecy, or derived it from a person who owed a duty to maintain secrecy.

If someone steals your confidential information, receives it knowing it was stolen, or violates a confidentiality obligation, that’s misappropriation under Nevada law.

The Departing Employee Pattern

Most trade secret cases in Nevada’s tech corridor follow the same path. An employee at a Reno, Sparks, or Tahoe Reno Industrial Center tech company has access to confidential information: customer data, source code, pricing models, and sales strategies. Before or shortly after leaving, they copy files, forward emails to personal accounts, or download databases. They then join a competitor or start their own business, using the stolen information to get ahead.

The Nevada Governor’s Office of Economic Development reported that the Reno-Sparks metro added over 15,000 technology jobs between 2019 and 2024. Tesla, Switch, Apple, and dozens of venture-backed startups now operate along I-80 between Reno and Fernley. Las Vegas is building its own tech sector around the Downtown startup ecosystem and UNLV research programs. When skilled workers move frequently between competing companies in a concentrated area, trade secret theft becomes an obvious problem.

How Does NRS 600A Compare to the Federal Defend Trade Secrets Act?

Two Laws, One Courtroom

Since 2016, Nevada plaintiffs have two options: NRS 600A (state law) and the federal Defend Trade Secrets Act (18 U.S.C. Section 1836). You can file claims under both in the same federal lawsuit.

The key differences:

Jurisdictional reach. NRS 600A covers trade secrets used in Nevada commerce. The DTSA covers trade secrets related to products or services used in (or intended for) interstate or foreign commerce. If the stolen information crossed state lines, which is typical in tech, the DTSA provides federal jurisdiction.

Ex parte seizure. The DTSA (18 U.S.C. Section 1836(b)(2)) allows courts to issue ex parte seizure orders in extraordinary cases, seizing stolen materials without advance notice to the defendant. NRS 600A has no equivalent. We’ve used this in cases where the defendant threatened to destroy or transfer stolen files.

Whistleblower immunity. The DTSA (18 U.S.C. Section 1833(b)) shields individuals who disclose trade secrets to a government official or attorney to report suspected violations. NRS 600A has no equivalent. Nevada employment agreements should include a DTSA whistleblower notice to preserve the right to exemplary damages and attorney’s fees.

Damages calculation. Both statutes cover actual damages (including unjust enrichment) and injunctive relief, with enhanced damages for willful misappropriation. NRS 600A.050 allows up to double damages for willful and malicious misappropriation. The DTSA allows up to double damages under 18 U.S.C. Section 1836(b)(3)(C). Both authorize attorney’s fees for willful misappropriation.

File under both statutes. The overlapping remedies give you flexibility, and the DTSA’s ex parte seizure provision matters if the defendant might destroy evidence.

What Injunctive Relief Can You Get for Trade Secret Theft in Nevada?

Speed Matters

In trade secret cases, the value of your claim drops every day. Once a competitor has your customer list, algorithm, or manufacturing process, damage compounds fast. Injunctive relief is the key remedy.

Under NRS 600A.040, a court can issue an injunction to prevent actual or threatened misappropriation. The injunction can prohibit the defendant from using or disclosing the trade secret and can require the defendant to take affirmative steps (like returning or destroying stolen files).

Getting a temporary restraining order (TRO) within days of discovery is the goal. A TRO in the District of Nevada requires:

1. A likelihood of success on the merits
2. A likelihood of irreparable harm without the injunction
3. The balance of hardships in your favor
4. The injunction is in the public interest

Trade secret cases have a built-in argument for irreparable harm: once a secret is out, you can’t put it back. District of Nevada courts recognize this. A TRO stops the damage while the full case proceeds.

The Preservation Order

Alongside a TRO, seek a preservation order requiring the defendant to preserve all electronic devices, files, cloud accounts, and communications tied to the stolen trade secrets. Defendants delete files, wipe devices, empty trash. A preservation order backed by contempt sanctions stops this.

We file TRO motions within 72 hours of discovering trade secret theft. Speed is everything. The longer you wait, the weaker the emergency argument becomes.

How Are Damages Calculated in a Nevada Trade Secret Case?

Three Approaches

NRS 600A.050 allows damages calculated by any just method:

Actual loss. The profits you lost because of the theft. If the defendant used your customer list to steal clients, your actual loss is revenue those clients would have generated. This requires expert testimony: what would your revenue have been without the theft?

Unjust enrichment. The profits the defendant earned from the theft, not already captured in your actual loss. If they used your proprietary algorithm to win contracts you would never have competed for, their profits from those contracts are unjust enrichment.

Reasonable royalty. If actual loss and unjust enrichment are hard to prove, the court can award a reasonable royalty: the license fee you would have charged for legitimate use of your trade secret. This ensures compensation even when direct financial harm is unclear.

Enhanced Damages and Attorney’s Fees

For willful and malicious misappropriation, NRS 600A.050 allows up to double damages. “Willful and malicious” means the defendant knew they were stealing and did it anyway. The departing employee copying files on their last day is the standard example.

Attorney’s fees are available under NRS 600A.055 for willful and malicious misappropriation or bad faith claims. Trade secret litigation fees easily reach six figures. The prospect of paying opponent’s fees creates strong settlement pressure.

What Is the Statute of Limitations for Trade Secret Claims in Nevada?

Three Years from Discovery

NRS 600A.060 sets a three-year statute of limitations. The clock starts when the theft is discovered or should have been discovered through reasonable diligence.

That “should have been discovered” matters. If you noticed a former employee competing for your clients, offering suspiciously similar products, or recruiting your staff, but ignored it for two years, a court might say the clock started then, not when you finally investigated.

For Reno, Sparks, and Las Vegas tech companies: monitor departing employees. Review access logs when someone resigns. Check for unusual downloads in the weeks before departure. These protect your legal rights and catch theft within the window.

Build an offboarding protocol now. Every departing employee needs access logs reviewed, devices collected (or wiped if personal), and departure interviews documented. If you find unusual file activity, preserve the evidence and call an attorney immediately. The three-year clock is running.

Why Does Nevada’s Tech Corridor Face Unique Trade Secret Risks?

Concentrated Industry, Mobile Workforce

Nevada’s Reno-Sparks tech corridor faces specific challenges. The industry is geographically concentrated, with most tech companies sitting within a 20-mile I-80 stretch from downtown Reno through Sparks to the Tahoe Reno Industrial Center, and the workforce is small and interconnected. Engineers and developers move between direct competitors five miles apart.

Unlike California, Nevada allows non-compete agreements under NRS 613.195. A non-compete must have valuable consideration, can’t be broader than necessary to protect business interests, and can’t impose undue hardship. Courts enforce them, but they don’t replace trade secret law. A non-compete bars working for competitors. Trade secret law bars using specific proprietary information anywhere.

Las Vegas has its own tech scene. Downtown Las Vegas, centered on Fremont East and the old City Hall innovation zone, attracts fintech, hospitality tech, and gaming tech startups. Gaming generates enormous trade secret material: proprietary game algorithms, player analytics, marketing strategies, and tech platforms powering the Strip’s biggest casinos.

The Nevada Gaming Control Board reported $15.6 billion in gross gaming revenue for fiscal year 2024. The technology behind that consists of slot machine algorithms, player tracking, and sports betting platforms. These are exactly the high-value proprietary information trade secret law protects.

Cross-Border Issues

Many Nevada tech companies operate in both Nevada and California. An employee might work from Reno but collaborate with teams in San Jose or Los Angeles. Trade secret disputes then raise a question: which state’s law applies?

Nevada and California both adopted the Uniform Trade Secrets Act but with differences. California (Cal. Civ. Code Sections 3426 through 3426.11) bans non-compete agreements under Business and Professions Code Section 16600, making trade secret law the primary tool against departing employee competition. Nevada allows non-competes, giving employers an extra layer.

If you operate in both states, your strategy must account for both laws. NDAs and invention assignment agreements should comply with the more restrictive state while preserving protections under the less restrictive.

What Should You Do Immediately if You Discover Trade Secret Theft?

The First 72 Hours

The first three days after discovering theft determine the case’s trajectory. Here’s what we tell clients:

Hour 1-4: Preserve evidence. Don’t confront the thief. Immediately preserve all access logs, email records, file transfers, cloud storage, and badge records. Contact IT or your MSP. Secure company devices before they can be wiped.

Hour 4-12: Engage forensics. Hire a digital forensics firm. They image devices, recover deleted files, trace transfers, and document the chain of custody. This evidence is critical for the TRO motion and trial. Reno and Las Vegas both have qualified firms.

Day 1-2: Contact your attorney. Decide whether to seek emergency relief. If the employee is actively using your secrets at a competitor, a TRO motion in the District of Nevada can stop it within days. Your attorney needs the forensics and the specific trade secrets to draft the motion.

Day 2-3: Prepare the TRO motion. The motion requires a declaration from someone with personal knowledge of the secrets and theft, the forensic evidence, and a proposed order. We file these on an emergency basis, and courts grant TROs within 24 hours in urgent cases.

Do not delay. Every day weakens your case. Courts want to see you treated it as an emergency. If you discovered theft Monday and didn’t call a lawyer for a month, the court will doubt the harm is irreparable.

Building the Full Case

After the initial emergency response, discovery and litigation follow. Key steps:

• Formal discovery identifying all secrets the defendant accessed, copied, or used
• Depositions of the defendant and any co-conspirators
• Expert analysis quantifying damages (your losses and defendant’s unjust enrichment)
• Mediation (which the District of Nevada encourages in most civil cases)
• Trial if settlement isn’t reached

Cases in the District of Nevada typically run 12 to 18 months from filing to trial. Cases with TRO and preliminary injunction motions move faster in early stages because courts prioritize injunctive relief.

At Mister Wolf, P.C., we handle trade secret cases for Nevada tech companies from initial discovery through trial. Nevada entertainers and performers facing different IP theft should read our post on the right of publicity in Nevada’s entertainment industry. If a former employee took proprietary data, call us and describe what happened. Bring access logs and any forensic findings. We’ll assess whether emergency relief applies and prepare the motion that day.