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ARTICLE · 28 SEPTEMBER 2016

Available Now! 2016 Defend Trade Secrets Act Reference Guide

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On May 11, 2016, President Barack Obama signed into law the Defend Trade Secrets Act of 2016, which Congress passed April 27, 2016. So, what does the passage of the DTSA mean for your company?

United StatesIntellectual Property
Robert Milligan
Robert Milligan
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On May 11, 2016, President Barack Obama signed into law the Defend Trade Secrets Act of 2016 ("DTSA"), which Congress passed April 27, 2016. So, what does the passage of the DTSA mean for your company?

In a nutshell, the DTSA "federalizes" trade secret law by creating a federal claim for trade secret misappropriation and creates new remedies, including an ex parte seizure order to recover misappropriated trade secrets. It also serves as a reminder that trade secrets can be highly valuable to your company and that you should ensure that your company has reasonable secrecy measures in place to protect them.

Nevertheless, the DTSA also imposes new obligations on employers. To take full advantage of the remedies provided under the DTSA, companies have an immediate obligation to provide certain disclosures in all non-disclosure agreements with employees, contractors, and consultants that are entered into or updated following the statute's effective date.

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