The “Defend Trade Secret Act” is about to become law.
by Bill Naifeh - April 28th, 2016. Filed under: Intellectual Property - General.Yesterday, the House passed the “Defend Trade Secrets Act” (“DTSA”) by a 410-2 vote. Previously, the DTSA passed the senate. So, now the DTSA is headed to President Obama who is expected to sign it. The law is designed to go into effect on the date of its enactment.
The DTSA amends the Economic Espionage Act to create a private civil cause of action for trade secret misappropriation. Previously, civil trade secret misappropriation has been purely a matter of state law.
Due to the enactment of the Uniform Trade Secret Act in 47 states, there already is a great deal of uniformity in state law regarding trade secrets. The DTSA is not designed to eliminate or preempt the various state trade secret laws but rather act as an additional layer of protection. Some question the need for the law. In reality, Congress can point to this law as proof that they actually did something this election year.
For more information, contact Bill Naifeh at www.naifeh.com.