On April 4, 2016, the U.S. Senate unanimously approved a bill entitled the Defend Trade Secrets Act of 2016 (DTSA) ((S. 1890). The bill, introduced by Senator Orrin Hatch in July 2015, intends to establish a uniform national trade secret protection standard. Importantly, the Act creates a federal cause of action for trade secret misappropriation and provides for damages and injunctive relief, including seizure orders to prevent dissemination of the trade secret. The 87-0 passage of the Act reflects strong bipartisan support for the much needed reform.
By creating a private right of action in federal court, the Act seeks to harmonize the various states' implementations of the Uniform Trade Secrets Act (UTSA) which has been adopted in 47 states. However, a party will still have the option to file suit in state court because the Act does not "preempt any other provision of law." The DTSA has wide industry support, as well as strong support from the White House. It now heads to the House of Representatives, where an identical federal trade secret bill, H.R. 3326, is pending in the House of Representatives.
"Unfortunately, in today's global information age, there are endless examples of how easy— and rewarding—it can be to steal trade secrets," said Senator Orrin Hatch, R-Utah in a press release in July 2015. "Yet there are no federal remedies available to help victim companies recover from their losses. The Defend Trade Secrets Act of 2015 establishes a uniform standard for what constitutes trade secret theft and will give U.S. companies the ability to protect their trade secrets in federal court. I hope Congress will act quickly to pass this bipartisan, bicameral bill that will help American companies maintain their competitive advantage both here and abroad." http://www.hatch.senate.gov/public/index.cfm/2015/7/senate-house-leaders-introduce-bipartisan-bicameral-bill-to-protect-trade-secrets
The DTSA is being lauded as "a major step toward deterring cybercrime" as discussed in one of the stories we bring you this week: Opinion: Why trade secrets bill will deter cybercrime.
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