Code of Alabama
Ala. Code § 8-27-3 (2026)
Misappropriation.
✓ official Alabama Legislature (ALISON) text, current July 2026
A person who discloses or uses the trade secret of another, without a privilege to do so, is liable to the other for misappropriation of the trade secret if:
(1) That person discovered the trade secret by improper means;
(2) That person’s disclosure or use constitutes a breach of confidence reposed in that person by the other;
(3) That person learned the trade secret from a third person, and knew or should have known that (i) the information was a trade secret and (ii) that the trade secret had been appropriated under circumstances which violate the provisions of (1) or (2), above; or
(4) That person learned the information and knew or should have known that it was a trade secret and that its disclosure was made to that person by mistake.
(Acts 1987, No. 87-669, p. 1195, §2.)
Notes of Decisions
Cited in 15
cases (5 in the last 5 years), 1995–2026 · leading case: Bell Aerospace Servs., Inc. v. U.S. Aero Servs., Inc., 690 F. Supp. 2d 1267 (M.D. Ala. 2010).
Bell Aerospace Servs., Inc. v. U.S. Aero Servs., Inc., 690 F. Supp. 2d 1267 (M.D. Ala. 2010). “See 1975 Ala.Code§ 8-27-3. 4 . Even if this claim were permitted by Alabama statute, it is unclear how this charge differs from Bell Aerospace's ATSA and conversion claims.”
Ages Grp., LP v. Raytheon Aircraft Co., Inc., 22 F. Supp. 2d 1310 (M.D. Ala. 1998). “Under Alabama Code § 8-27-3(1), a person who discloses or uses the trade secret of another, without privilege to do so, is liable for misappropriation of the trade secret if the person discovered the trade secret by improper means.”
Unisource Worldwide, Inc. v. South Cent. Alabama Supply, LLC, 199 F. Supp. 2d 1194 (M.D. Ala. 2001). “Ala.Code § 8-27-3. The information in this case is likely to be a trade secret.”
Sevier Ins. Agency, Inc. v. Willis Corroon Corp., 711 So. 2d 995 (Ala. 1998). “In both actions, Corroon alleged that the defendants had unlawfully interfered with Corroon's contractual and business relations, were guilty of a breach of contract, and that they violated the provisions of Ala.Code 1975, § 8-27-3, the "Alabama Trade Secrets Act.”
Variable Annuity Life Ins. Co., The, Valic Fin. Advisors Inc. v. Brett Laferrera, 680 F. App'x 880 (11th Cir. 2017). “Soon after, Plaintiffs filed this lawsuit alleging breach of contract (against the Laferreras) and violations of Alabama’s Trade Secret Act, Ala. Code § 8-27-3 , and the Computer Fraud and Abuse Act, 18 U.”
Movie Gallery Us, LLC v. Greenshields, 648 F. Supp. 2d 1252 (M.D. Ala. 2009). “Because the detailed customer lists were trade secrets, the court must now turn to whether Greenshields misappropriated them under 1975 Ala.Code § 8-27-3. As noted above, much of the evidence suggests that Greenshields was not using trade secrets specifically to target Movie…”
Alagold Corp. v. Freeman, 20 F. Supp. 2d 1305 (M.D. Ala. 1998). “Under Alabama Code § 8-27-3 (1993), a person who discloses or uses the trade secret of another, without privilege to do so, is liable for misappropriation of the trade secret if: (1) That person discovered the trade secret by improper means; (2) That person’s disclosure or use…”
B & S Underwriters, Inc. v. Clarendon Nat'l Ins., 892 F. Supp. 815 (W.D. La. 1995). “§ 51:1431 (1995) and Ala.Code § 8-27-3 (1994). Having reviewed the record, this court concludes that the trier of fact may find that the defendants acquired plaintiffs trade secret, had a duty to maintain its secrecy but disclosed or used it without the plaintiffs consent.”
Ranger Env't Servs. LLC v. Foehl (S.D. Ala. 2023). “Similarly, the ATSA prohibits the misappropriation of trade secrets, Ala. Code § 8-27-3 , as defined by the statute Ala.”
HB&G Bldg. Prods., Inc. v. Digger Specialties Inc. (M.D. Ala. 2022). “CODE § 8-27-3 (“ATSA”) (Count 2); and civil conspiracy (Count 4).”
Ham-Let, USA, Inc. v. Guthrie (M.D. Ala. 2019). “CODE § 8-27-3 (1975). Specifically, Ham-Let alleges that Guthrie, prior to the termination of her employment with Ham-Let, accessed, downloaded, and retained Ham-Let’s confidential and proprietary trade secrets, and then used that information in her new employment with Compart,…”
TruTemp Refrigeration & Com. Climate, LLC v. Mowbray (M.D. Ala. 2023). “CODE § 8-27-3. The ATSA defines a “trade secret” as information that (1) is “used or intended for use in a trade or business”; (2) is “included or embodied in a formula, pattern, compilation, computer software, drawing, device, method, technique, or process”; (3) is “not…”
— Ala. Code § 8-27-3(1) — 1 case
Ages Grp., LP v. Raytheon Aircraft Co., Inc., 22 F. Supp. 2d 1310 (M.D. Ala. 1998). “Under Alabama Code § 8-27-3(1), a person who discloses or uses the trade secret of another, without privilege to do so, is liable for misappropriation of the trade secret if the person discovered the trade secret by improper means.”
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