Time To Rethink Your Trade Secret Strategy? Legislation is Looming.
Are you trade secret reliant? If yes, take two minutes to read this post. Why? Well, federal Representatives OK’d a bill that, if fully passed, may impact your intellectual property protection strategy.
Summary of Proposed Trade Secret Law: Addition Of Federal Jurisdiction Privileges
Dubbed the Defend Trade Secrets Act (DTSA), it’s been described as the “most significant expansion of federal law in intellectual property since the Lanham Act in 1946.”
Currently, trade secret governance is a state issue. If, however, DTSA becomes law, certain people could file trade secret claims in federal court. To qualify, potential plaintiffs would have to supply “evidence of actual or threatened misappropriation before a court [could] issue an injunction to prevent it.”
Join or Die! The Supporters Are Saying…
Why alter trade secret standards? The argument goes like this:
- Back in the day, trade secret disputes were “largely a local matter.” Typical cases involved a departing employee smuggling confidential customer lists to their new job…down the street.
- Enter the Internet. Many a tech fortune was built on the back of a trade secret (i.e., Google’s infamous algorithm). Or, to put it in cash-money terms: Trade secrets represent trillions of publicly traded dollars!
On account of their exalted economic position, people feel that federal courts are best equipped to handle complex, high-dollar trade secret claims.
Objection! The Opposition’s Standpoint…
Not everyone is cheering for this new trade secret law. Opponents say the measure is superfluous. States, they argue, are well-equipped to handle all manners of trade secret claims. Also, DTSA detractors think the bill’s wording — specifically the phrase “extraordinary circumstances” — is too vague.
Pundits portend a trade secret litigation spike if politicians pass the law.
Speak With A Trade Secret Lawyer
Trade secrets play a giant role in today’s tech industry. Formulas, algorithms and calculations are at the heart of many startups and established firms.
Our team has successfully handled all manners of trade secret-related situations. A lawsuit isn’t always necessary to remedy a misappropriation. Get in touch today to start reviewing potential solutions.
Gershman, J. (2016, April 27). Congress May Be About to Shake Up Trade Secret Law: Is That a Good Thing? Retrieved June 17, 2016, from http://blogs.wsj.com/law/2016/04/27/congress-may-be-about-to-shake-up-trade-secret-law-is-that-a-good-thing/