Theft of Trade Secrets: Texas Penal Code §31.05

The Texas Theft of Trade Secrets law creates a criminal offense for stealing a trade secret, making a copy of an article representing a trade secret, or communicating or transmitting a trade secret.

But just what is a “trade secret“?

The Texas legislature codified this criminal offense in Texas Penal Code Section Section 31.05.{Texas Penal Code §31.05} In 2025, the legislature amended this law for the first time since 1994 to add definitions for “foreign agent,” “foreign government,” and “foreign instrumentality,” and to increase punishment to a second-degree felony when the actor intended to benefit a foreign agent, foreign government, or foreign instrumentality; these changes apply to conduct on or after September 1, 2025, and earlier conduct is governed by prior law.

The Penal Code classifies the Texas Theft of Trade Secrets law under Title 7 “Offenses Against Property,” Chapter 31 “Theft.” Learn more about the Texas offense of Theft of Trade Secrets below.

What is the current Texas law about Theft of Trade Secrets?

AV Preeminent Texas lawyer Paul Saputo provides the current law defining Theft of Trade Secrets in Penal Code Section §31.05, as follows:^[1]

(b) A person commits an offense if, without the owner’s effective consent, he knowingly:

(1) steals a trade secret;

(2) makes a copy of an article representing a trade secret; or

(3) communicates or transmits a trade secret.

What are trade secrets?

The statute defines “trade secrets” as “any part of any scientific or technical information, design, process, procedure, formula, or improvement that has value and that the owner has taken measures to prevent from becoming available to persons other than those selected by the owner to have access for limited purposes.”^[2]

What is the penalty for a Texas Theft of Trade Secrets offense?

By default, Theft of Trade Secrets is a third-degree felony, but it is a second-degree felony if the person intended to benefit a foreign agent, foreign government, or foreign instrumentality.^[3]

What changed in 2025

New defined terms. The legislature added definitions for “foreign agent,” “foreign government,” and “foreign instrumentality” to §31.05(a).^[4]

Higher punishment tier. The offense is a second-degree felony if the person intended to benefit a foreign agent, foreign government, or foreign instrumentality; otherwise it remains a third-degree felony.^[5]

Effective date and applicability. These changes apply to offenses committed on or after September 1, 2025; earlier conduct is governed by prior law.^[6]

How can I be charged with a Theft of Trade Secrets offense in Texas?

You can be charged with Theft of Trade Secrets in Texas if the state’s attorneys believe that each of the elements of §31.05(b) as described in the section above have been met.

What is the statute of limitations for Theft of Trade Secrets in Texas?

Theft of Trade Secrets offenses have a three-year limitations period.^[7]

Can you get probation for Theft of Trade Secrets in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Theft of Trade Secrets, and judges are also allowed to accept deferred adjudication plea deals.^[8]

Note, however, that judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.^[9]

What level of crime is Theft of Trade Secrets in Texas?

The Penal Code classifies the punishment for Theft of Trade Secrets as a third degree felony by default, but elevates it to a second-degree felony if the person intended to benefit a foreign agent, foreign government, or foreign instrumentality.

Learn more about the penalty range for this offense in the section above.

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Legal References:

^1. Texas Penal Code §31.05. This law is current as of 2025.^2. Texas Penal Code §31.05(a)(4)^3. Texas Penal Code §31.05(c), as amended by HB 127, 89th Texas Legislature (RS), Section 4^4. Texas Penal Code §31.05(a)(2-a)–(2-c), as amended by HB 127, 89th Texas Legislature (RS), Section 3^5. Texas Penal Code §31.05(c), as amended by HB 127, 89th Texas Legislature (RS), Section 4^6. HB 127, 89th Texas Legislature (RS), Sections 6, 10^7. See Code of Criminal Procedure §12.01(11)^8. See Chapter 42A, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102^9. Art. 42A.054(b), Texas Code of Criminal Procedure