N.J. Stat. » Title 56 — TRADE NAMES, TRADE-MARKS AND UNFAIR TRADE PRACTICES
New Jersey Statutes

N.J. Stat. § 56:15-2 (2026)

Definitions relative to misappropriation of trade secrets

✓ current as of May 2026
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2. As used in this act:

"Improper means" means the theft, bribery, misrepresentation, breach or inducement of a breach of an express or implied duty to maintain the secrecy of, or to limit the use or disclosure of, a trade secret, or espionage through electronic or other means, access that is unauthorized or exceeds the scope of authorization, or other means that violate a person's rights under the laws of this State.

"Misappropriation" means:

(1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(2) Disclosure or use of a trade secret of another without express or implied consent of the trade secret owner by a person who:

(a) used improper means to acquire knowledge of the trade secret; or

(b) at the time of disclosure or use, knew or had reason to know that the knowledge of the trade secret was derived or acquired through improper means; or

(c) before a material change of position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired through improper means.

"Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

"Proper means" means discovery by independent invention, discovery by reverse engineering, discovery under a license from the owner of the trade secret, observation of the information in public use or on public display, obtaining the trade secret from published literature, or discovery or observation by any other means that is not improper.

"Reverse engineering" means the process of starting with the known product and working backward to find the method by which it was developed so long as the acquisition of the known product was lawful or from sources having the legal right to convey it, such as the purchase of the item on the open market.

"Trade secret" means information, held by one or more people, without regard to form, including a formula, pattern, business data compilation, program, device, method, technique, design, diagram, drawing, invention, plan, procedure, prototype 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.

Notes of Decisions
Cited in 29 cases (22 in the last 5 years), 2016–2025 · leading case: Baxter Healthcare Corp. v. HQ Specialty Pharma Corp., 157 F. Supp. 3d 407 (D.N.J. 2016).
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Baxter Healthcare Corp. v. HQ Specialty Pharma Corp., 157 F. Supp. 3d 407 (D.N.J. 2016). · cites it 10× “45 N.J.S.A. § 56:15-2. The Act then defines misappropriation of a qualifying trade secret to include: .”
Freedom Funding Grp., Inc. v. The Freedom Fundinggroup L.L.C. (D.N.J. 2022). · cites it 8× “2016) (quoting N.J.S.A. § 56:15-2). “The party who asserts the trade secret bears the burden of proving that the information is a secret and not a matter of general knowledge in the industry.”
Marina Dist. Dev. Co., LLC v. AC Ocean Walk, LLC (D.N.J. 2021). · cites it 6× “§§ 1836 (b)(1), 1839(3), (5); N.J.S.A. § 56:15-2. However, Par Pharm., Inc.”
Intech Powercore Corp. v. Albert Handtmann Elteka Gmbh & Co. Kg (D.N.J. 2021). · cites it 6× “N.J.S.A. § 56:15-2. In assessing whether information is a trade secret, courts typically consult six factors: (1) knowledge of the information outside the business; (2) knowledge of the information by employees and others in the business; (3) measures taken by the owner to keep…”
Sunbelt Rentals, Inc. v. Love (D.N.J. 2021). · cites it 5× “§ 56:15-2. “Misappropriation” is defined in relevant part by the NJTSA as (1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (2) Disclosure or use of a trade secret of another without…”
Voorhees v. Tolia (D.N.J. 2020). · cites it 4× “N.J. Stat. Ann. § 56:15-2 . Misappropriation of a qualifying trade secret is defined as: (1) Acquisition of a trade secret of another by a person who knows or has reason to know that a person acquired the trade secret by improper means; or (2) Disclosure or use of a trade secret…”
Beth Lasch Vs. Stuart Koperweis (l-3917-16, Monmouth Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2019). · cites it 3× “, plan, procedure, prototype or process, that: (1) Derives independent economic value, actual or A-4352-17T1 8 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…”
Corp. Synergies Grp., LLC v. Andrews (D.N.J. 2019). · cites it 3× “N.J.S.A. 56:15-2. AVC. CSG pleads that its principal place of business in New Jersey (AVC 22); Ur lived in New Jersey (id.”
Fora Fin. Holdings, LLC v. Dream Data Servs., LLC (D.N.J. 2023). · cites it 3× “§§ 1836 (b)(1), 1839@); and then citing N.J. Stat. Ann. § 56:15-2 ); see also On Location, Inc.”
Orient Turistik Magazacilik San Ve Tic Ltd. Sti v. Aytek USA, Inc. (D.N.J. 2025). · cites it 3× “§§ 1836 (b)(1), 1839(3), (5); N.J. Stat. Ann. § 56:15-2 ). Because the two statutes are substantially similar and include identical or nearly identical definitions for each of the statutory terms at issue here, this Court analyzes the two claims together and arrives at the same…”
Signet Media, Inc. v. LG Elec., U.S.A., Inc. & LG Elec. MobileComm U.S.A., Inc. (D.N.J. 2025). · cites it 3× “” N.J. Stat. Ann. § 56:15-2 . The DTSA defines the same as “all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques,…”
Lynnann Voorhees v. Indu Tolia (3d Cir. 2023). · cites it 2× “The District Court dismissed this claim because Voorhees did not allege the existence of a trade secret as defined in N.J. Stat. Ann. § 56:15-2 . We agree. 1 Tolia and CARE (collectively, “Tolia”) were the only defendants who responded to the complaint.”
Show all 29 citing cases →
N.J. Stat. § 56:15-2(1): 1 case
Marina Dist. Dev. Co., LLC v. AC Ocean Walk, LLC (D.N.J. 2021). “§§ 1836 (b)(1), 1839(3), (5); N.J.S.A. § 56:15-2. However, Par Pharm., Inc.”
N.J. Stat. § 56:15-2(2): 1 case
Freedom Funding Grp., Inc. v. The Freedom Fundinggroup L.L.C. (D.N.J. 2022). “2016) (quoting N.J.S.A. § 56:15-2). “The party who asserts the trade secret bears the burden of proving that the information is a secret and not a matter of general knowledge in the industry.”
N.J. Stat. § 56:15-2(2)(a): 1 case
Freedom Funding Grp., Inc. v. The Freedom Fundinggroup L.L.C. (D.N.J. 2022). “2016) (quoting N.J.S.A. § 56:15-2). “The party who asserts the trade secret bears the burden of proving that the information is a secret and not a matter of general knowledge in the industry.”
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