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ARTICLE · 03 MAY 2016

Congress Passes Sweeping New Legislation To Protect Trade Secrets

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Late yesterday, in a departure from the partisan gridlock that has gripped Washington, the House of Representatives joined the Senate in passing a sweeping new statute to protect trade secrets.

United StatesIntellectual Property
Foley Hoag LLP
Foley Hoag LLP
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Late yesterday, in a departure from the partisan gridlock that has gripped Washington, the House of Representatives joined the Senate in passing a sweeping new statute to protect trade secrets. The legislation, which President Obama strongly supported and is expected to sign within days, creates a new federal civil cause of action for trade secret theft.

The speed with which Congress passed this legislation – entitled the Defend Trade Secrets Act of 2016 (DTSA) – reflects the increasing importance of trade secrets to American business. The ascendency of trade secrets as a form of intellectual property protection has occurred against the backdrop of upheaval and uncertainty in the patent system. Patent owners have had to contend with new challenges to the validity of patents as well as a host of recent Supreme Court decisions limiting the types of inventions and discoveries eligible for patent protection.

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