Federal Protection For Trade Secrets Is Coming

On April 4, 2016, the U.S. Senate unanimously approved a bill entitled the Defend Trade Secrets Act of 2016 (DTSA) ((S. 1890). The bill, introduced by Senator Orrin Hatch in July 2015, intends to establish a uniform national trade secret protection standard. Importantly, the Act creates a federal cause of action for trade secret misappropriation and provides for damages and injunctive relief, including seizure orders to prevent dissemination of the trade secret. The 87-0 passage of the Act reflects strong bipartisan support for the much needed reform.

By creating a private right of action in federal court, the Act seeks to harmonize the various states' implementations of the Uniform Trade Secrets Act (UTSA) which has been adopted in 47 states. However, a party will still have the option to file suit in state court because the Act does not "preempt any other provision of law." The DTSA has wide industry support, as well as strong support from the White House. It now