Federal Precedents Under The DTSA Have Arrived

While the Defend Trade Secrets Act of 2016 ("DTSA") has only been in effect for a few months, the first wave of cases raising DTSA claims have started to generate federal decisions. In what appears to be the first substantive ruling under the Act, the Northern District of California illustrated some the advantages – and limitations – of DTSA claims in the context of injunctive relief.

Henry Schein, Inc. ("HSI"), a manufacturer of medical, dental and veterinary supplies, sued its former employee, Jennifer Cook, under the DTSA and a host of other California state law claims. Henry Schein, Inc. v. Cook, 16-cv-03166-JST (N.D. Cal.). Cook, a former sales associate, is alleged to have taken HSI's trade secrets (including customer information) to her new employer, a competing dental supply company, despite her confidentiality agreements with HSI. HSI sought a temporary restraining order and, later, a preliminary injunction under both the DTSA and California state law