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ARTICLE · 23 MAY 2016

Defend Trade Secrets Act: Summary And Considerations For Employers

Herrick, Feinstein LLP
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On May 11, President Obama signed the Defend Trade Secrets Act [S.1890], which for the first time creates powerful federal civil equitable and monetary remedies for trade secret misappropriation involving interstate commerce.

United StatesIntellectual Property
Barry Werbin
Barry Werbin
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On May 11, President Obama signed the Defend Trade Secrets Act [S.1890], which for the first time creates powerful federal civil equitable and monetary remedies for trade secret misappropriation involving interstate commerce.

The Act does not preempt state trade secret laws, which would include the Uniform Trade Secrets Act, but does provide a federal court option that would not otherwise be available in many cases brought under state laws.

The biggest immediate impact is on employers, who are now required to notify their employees and independent contractors of new whistleblower immunity provisions by written agreement or by providing them with a reference to an amended policy document. Failure to provide such notice will preclude an employer from recovering enhanced damages and legal fees otherwise available under the Act.

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