As technology accelerates and electronic information theft becomes more difficult to detect and prevent, vigilant companies constantly look for ways to protect the trade secrets they consider their “crown jewels.” The passage of the Defend Trade Secrets Act of 2016 (DTSA) will help company management and counsel sleep better knowing that federal courts will be empowered to provide consistent, uniform trade secret protection across the country.
The House voted yesterday to pass the DTSA, which the Senate had unanimously passed. President Obama is expected to sign it into law.
The DTSA amends the Economic Espionage Act of 1996 (EEA) by allowing plaintiffs to file civil lawsuits for trade secret misappropriation in federal court. Thus, the DTSA provides an option to bring claims for misappropriation of trade secrets in federal court when federal jurisdiction would not otherwise exist. It also provides uniformity in the law regarding trade secrets at a federal level, and should result in the development of national case law in an area that is often viewed as patchwork at best. This consistency, along with the benefit of access to federal courts, is one of the main reasons company management strongly supported the DTSA.
Continue Reading Landmark Federal Trade Secrets Legislation on Its Way to President Obama for Signature