Does It Matter Where You File Your Trade Secrets Claim?

Where a plaintiff files its trade-secret claim can impact its litigation strategy.  The claims available may depend on both the location of the court and whether the business chooses state or federal court.

One of the first considerations with trade secrets litigation is whether to file the complaint in state court or federal court.  To proceed in federal court, a complaint must ordinarily allege a claim arising under federal law, principally a violation of the federal Defend Trade Secrets Act.  If a business presents at least one federal claim, it can also pursue claims under state law.  Every state has enacted a trade-secret statute, and the vast majority have adopted the Uniform Trade Secrets Act, with small variations.  Lawsuits in state court, in contrast, generally do not allege federal claims because doing so would permit the defendant to override the plaintiff's choice and proceed in federal court.