Iowa Trade Secret Laws: UTSA, Remedies & Deadlines

Iowa enacted the Iowa Uniform Trade Secrets Act, codified at Iowa Code §§ 550.1 to 550.8, in 1990. The statute closely tracks the Uniform Trade Secrets Act and sets a three-year civil limitations period running from the date misappropriation was discovered or reasonably should have been discovered (Iowa Code § 550.8).

This guide is part of our Trade Secret Laws by State series.

Information last verified on 2026-06-25. This article presents general legal information, not legal advice. For guidance on your specific situation, see Trade Secret Laws by State and consult an attorney licensed in Iowa.

Does Iowa have a trade secret law?

Yes. Iowa enacted the Iowa Uniform Trade Secrets Act in 1990, codified at Iowa Code §§ 550.1 to 550.8. The statute follows the UTSA framework used by 48 other states and the District of Columbia, so Iowa's definitions, standards for misappropriation, and remedies closely track the national model. The law covers all qualifying forms of information, including manufacturing processes, customer lists, pricing models, formulas, and software source code, without requiring registration with any government agency. Unlike several neighboring UTSA states, Iowa Code chapter 550 does not include a separate section addressing the Act’s effect on other law or preemption of conflicting tort claims.

What counts as a trade secret and misappropriation in Iowa?

Iowa Code § 550.2 defines a trade secret as information that satisfies two requirements: (1) the information derives independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means by persons who could profit from its use; and (2) the information is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Both elements must be present. A customer database, proprietary formula, business strategy, or piece of software code can qualify so long as the owner actively guards it and gains a competitive advantage from keeping it confidential. Losing secrecy by any means, including inadvertent public disclosure, ends protection permanently.

Misappropriation under Iowa Code § 550.2 takes two forms. The first is acquisition by improper means, which includes theft, bribery, misrepresentation, breach of a duty to maintain secrecy, or electronic espionage. The second is disclosure or use of a trade secret without consent by someone who knew or had reason to know that the secret was acquired by improper means, or who was subject to a duty of confidence and exceeded that duty.

Two limits apply. Reverse engineering a lawfully obtained product is a proper means of learning information and does not constitute misappropriation under Iowa law. Likewise, independent development of the same information is lawful.

Remedies and the limitations period in Iowa

Iowa Code § 550.3 authorizes injunctive relief to prevent actual or threatened misappropriation for as long as the trade secret would otherwise have remained protectable. Where an injunction would be inequitable, courts may instead require payment of a reasonable royalty for the period of authorized use.

Monetary remedies under Iowa Code § 550.4 include actual damages for losses caused by the misappropriation, plus any unjust enrichment not already captured by the damages figure, or a reasonable royalty as an alternative measure. For willful and malicious misappropriation, Iowa Code § 550.4 also permits exemplary damages of up to twice the compensatory award. Under Iowa Code § 550.6, the court may award actual and reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, a motion to terminate an injunction made or resisted in bad faith, or willful and malicious misappropriation.

Iowa's limitations period is three years (Iowa Code § 550.8), running from the date misappropriation was discovered or, by reasonable diligence, should have been discovered. Continuing misappropriation is treated as a single claim; the three-year period begins from the first act the owner discovered or reasonably should have discovered, not from the most recent act.

How the federal DTSA applies in Iowa

The Defend Trade Secrets Act of 2016 (18 U.S.C. §§ 1836-1839) gives Iowa businesses a parallel federal civil claim when the misappropriated secret relates to a product or service used in or intended for use in interstate or foreign commerce. The DTSA does not displace Iowa Code §§ 550.1 to 550.8 (18 U.S.C. § 1838), and Iowa owners routinely bring both state and federal claims in the same lawsuit.

The DTSA includes procedural tools unavailable under Iowa state law alone, including an ex parte civil seizure application to recover misappropriated materials in extraordinary circumstances (18 U.S.C. § 1836(b)(2)). The federal limitations period mirrors Iowa's: three years from discovery (18 U.S.C. § 1836(d)).

One compliance requirement applies directly to Iowa employers: any confidentiality agreement or nondisclosure agreement signed or updated after May 11, 2016 must contain the DTSA whistleblower-immunity notice required by 18 U.S.C. § 1833(b)(3). Omitting that notice forfeits the right to recover exemplary damages and attorney fees from that employee under the DTSA, even for willful theft. The federal Economic Espionage Act (18 U.S.C. §§ 1831-1832) also applies to criminal trade-secret theft in Iowa.

This is general legal information, not legal advice. It describes Iowa trade-secret law as of 2026-06-25 and does not address your specific facts. Trade-secret disputes are fact-intensive and limitations periods are strict. Consult an attorney licensed in Iowa before taking action.

Related articles

• Trade Secret Laws by State
• Indiana Trade Secret Laws
• Kansas Trade Secret Laws
• Is AI-generated code copyright infringement?

Last updated: 2026-06-25.