Senate Passes Defend Trade Secrets Act Of 2016

On April 4, 2016, the Senate passed the much-awaited Defend Trade Secrets Act of 2016 (S. 1890) by a unanimous vote of 87-0. If the House passes the bill, the proposed legislation would go to the President, who has already voiced support for this legislation. 

The Senate bill amends the Economic Espionage Act to provide a private civil cause of action for misappropriation of trade secrets. At present, civil trade secret misappropriation is governed by state law, and 48 states have adopted the Uniform Trade Secret Act. While the proposed legislation would not preempt current state law, it would provide a federal cause of action if the trade secret is related to a product or service that is used in, or that is intended to be used in, interstate or foreign commerce. Under the bill, "misappropriation" includes acquiring information the person knows, or should know, is a trade secret by improper means. "Improper means" includes theft, bribery, misrepresentation, in