When Using Former Employer's Trade Secrets Is A Criminal Offense

Worried that the non-compete provision in your employment agreements won't stop your ex-employees from competing? Well, make sure that you back up that provision with a solid clause restricting the taking or dissemination of your company's trade secrets and you may have an even bigger stick to swing at an ex-employee violating such a clause. Last month, the U.S. Senate unanimously passed a bill expanding the Economic Espionage Act ("EEA"); making it a crime for former employees to use their ex-company's trade secrets even if the trade secret isn't used in commerce. The bill provides that trade secrets relating to a "product or service used in or intended for use in commerce" will be covered by the EEA. The bill is in response to a court ruling earlier this year that held the EEA did not apply to trade secrets relating to internal products used by a company that are not sold in commerce. The new proposed broad language will cover most, if not all, of a company's trade