Federal Trade Secrets Law Comes Closer to Reality

Posted by Benjamin I. Fink on

Yesterday, several Senators and Representatives introduced a bipartisan, bicameral Bill in Congress to protect trade secrets.  The Defend Trade Secrets Act would create a federal private right of action for trade secret theft.  As regular readers of this blog know, various versions of this Bill have been introduced in prior sessions of Congress.  Given the bipartisan and bicameral nature of this Bill, it appears that this Bill has a much higher likelihood of becoming law than prior versions.

The current version of the Bill reigns in the controversial ex-parte seizure provisions that were in prior versions of the Bill.  While the ex-parte seizure provision remains, various safeguards have been included to better ensure that an ex-parte seizure is only permitted in the most egregious circumstances.

The Defend Trade Secrets Act would create a uniform standard for trade secrets misappropriation.  Advocates of the Bill say it will allow companies to be able to craft one set of non-disclosure policies secured in the knowledge that federal law will protect their trade secrets.

The Bill is supported by a wide-range of business and industry organizations.