Defend Trade Secrets Act To Become Law

On May 3, 2016, Cravath prepared for its clients a memo entitled “Defend Trade Secrets Act To Become Law.” The memo summarizes the Defend Trade Secrets Act of 2016 (“DTSA”), which was recently passed by the U.S. Senate and House of Representatives. The bill authorizes, for the first time in our country’s history, private civil actions in federal court for trade secret misappropriation, permitting an owner of a misappropriated trade secret to bring an action in federal court provided the trade secret is “related to a product or service used in, or intended for use in, interstate or foreign commerce.”

The enactment of the DTSA supplies trade secret holders with powerful new tools to stop misappropriation of their trade secrets and seek compensation, while competitors and persons accused of misappropriating trade secrets gain the consistency and jurisdictional efficiency of the federal court system. As such, the DTSA is set to provide an improved legal framework for all who interact with trade secrets in the U.S.

Please click here to read the memo.