HB102 Alabama 2010 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2010

Title

Trade secrets, willful and malicious misappropriation of, civil penalties increased, intentional remuneration of a third person to misappropriate a trade secret, crime of established, Sec. 8-27-4 am'd.

Summary

HB102 would raise civil penalties for willful and malicious trade-secret misappropriation and create a new crime of paying someone to misappropriate a trade secret, with added employer-employee liability rules.

What This Bill Does

HB102 would increase the minimum civil penalty for willful and malicious misappropriation, adding exemplary damages of at least $5,000 up to $10,000 when such misappropriation exists. It would make it a Class C felony to intentionally remunerate or recruit a third party to misappropriate a trade secret, applying criminal liability to both the payer and the misappropriator, with added clarity that the misappropriated secret must be clearly identified. In civil cases, it would allow recovery of profits tied to the misappropriation, actual damages, and reasonable attorney's fees in certain bad-faith situations, and would treat each act as a separate offense. It also notes the bill is exempt from Amendment 621 funding requirements because it creates or amends a crime, and it specifies an effective date for when the law would take effect.

Who It Affects

• Trade secret owners and businesses that rely on trade secrets: they would have higher civil penalties available for misappropriation, and clearer rights to profits, damages, and attorney's fees.
• Employers, employees, and potential third-party misappropriators: employers could face criminal liability if they remunerate employees to steal trade secrets, and both payers and misappropriators could be charged under a new Class C felony; the statute requires clear identification of the misappropriated secret and treats each act as a separate offense.

Key Provisions

• Increases minimum civil penalties for willful and malicious misappropriation to a range that includes at least $5,000 and up to $10,000 when such misappropriation exists, along with potential exemplary damages.
• Allows civil recovery of the misappropriator's profits and other benefits tied to the misappropriation, plus actual damages and reasonable attorney's fees in certain bad-faith scenarios.
• Creates a Class C felony for intentionally remunerating or recruiting a third party to misappropriate a trade secret, and extends criminal liability to both the remitter and the misappropriator; requires the misappropriated trade secret to be clearly identified; mere receipt is not enough for criminal liability; each act is a separate offense.
• Adds employer-focused liability language defining 'intent' when an employer remunerates an employee to misappropriate trade secrets.
• Excludes the bill from Amendment 621 funding requirements because it defines a new crime or amends an existing one.
• Effective date: becomes law on the first day of the third month after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Crimes and Offenses