Do you have trade secrets that you want to protect? Are you concerned that a former employee or a competitor has misappropriated your trade secrets? Do you require employees to sign confidentiality agreements? If you answered “yes” to any of these questions, then you need to know about the federal Defend Trade Secrets Act (DTSA), which became law in 2016.
How is the DTSA different than other trade secrets laws? Because the DTSA is a federal law that creates a federal civil cause of action for misappropriation of trade secrets. In addition, the DTSA provides for new and different remedies than state laws, and creates new requirements for employers to include in their confidentiality agreements with employees.
The DTSA had such overwhelming support that it passed unanimously in the Senate and by a 410-2 vote in the House. It was signed into law by President Obama on May 11, 2016.
Leonard Segal recently co-authored an article about the DTSA. You can read his article here.