Although the DTSA will not preempt existing state trade-secret laws, it gives companies the powerful option of filing suit in federal court, thus adding an important additional tool for American companies, especially those with a national footprint, to enforce their intellectual property rights. The DTSA provides a uniform statute to be applied nationwide in federal court. For instance, the definition of “trade secret” differs from state to state, and different statutes of limitations may apply, and different remedies may be available for trade-secret misappropriation. Businesses should be aware of the salient provisions of the DTSA discussed below in order to adequately prepare to employ the protections of the DTSA.īefore the enactment of the DTSA, in the absence of diversity jurisdiction or an independent federal cause of action, companies seeking redress for trade-secret misappropriation had no choice but to sue in state court, where laws protecting against trade-secret misappropriation tend to differ from state to state both in the text of the laws themselves and in their application. For the first time, the DTSA gives American companies the opportunity to protect against and remedy misappropriation of important propriety information in federal court. The DTSA enjoyed wide, bipartisan support leading up to its enactment, passing in the House by a vote of 410-2 and passing unanimously in the Senate. if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.” Defend Trade Secrets Act of 2016, S. This important new legislation creates a federal, private, civil cause of action for trade-secret misappropriation in which “n owner of a trade secret that is misappropriated may bring a civil action. On May 11, 2016, President Obama signed the Defend Trade Secrets Act (DTSA) into law.
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