Defend Trade Secrets Act
Long title |
An Act to amend chapter 90 of title 18, United States Code, to provide Federal jurisdiction for the theft of trade secrets, and for other purposes |
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Acronyms (colloquial) | DTSA |
Enacted by | the 114th United States Congress |
Effective | May 11, 2016 |
Citations | |
Public law | Pub.L. 114–153 |
Statutes at Large | 130 Stat. 376 |
Legislative history | |
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The Defend Trade Secrets Act of 2016 (DTSA) (Pub.L. 114–153, 130 Stat. 376, enacted May 11, 2016, codified at 18 U.S.C. § 1836, et seq.) is a United States federal law that allows an owner of a trade secret to sue in federal court when its trade secrets have been misappropriated.[1] The act was signed into law by President Barack Obama on May 11, 2016.[1] It underscored Congress’s desire to align closely with the Uniform Trade Secrets Act, which had been adopted in some form in almost every U.S. state.[2] Technically, the DTSA extended the Economic Espionage Act of 1996, which criminalizes certain trade secret misappropriations.[3]
The law also grants legal immunity to corporate whistleblowers.[3]
After the DTSA's passage by the Senate, Forbes magazine called the law the "Biggest Development in [Intellectual Property] in Years".[3]
Notable cases
The first judicial decision under the DTSA was Henry Schein, Inc. v. Cook,[4] in the United States District Court for the Northern District of California, on June 10, 2016.[5] In that decision, U.S. District Court Judge Jon S. Tigar of the granted the first temporary restraining order under the DTSA prohibiting an ex-employee from soliciting customers of the plaintiff.[5]
The first verdict under the act came in Dalmatia Import Group, Inc. v. FoodMatch Inc. et al.,[6] on February 25, 2017.[7] In that case, a federal jury awarded Dalmatio $2.5 million for misappropriation of trade secrets, trademark infringement and counterfeiting,[7] $500,000 of which was allocated to the DTSA claim.[8] The trade secrets claim was based on Foodmatch's misappropriation of Dalmatia's fig jam recipe.[9]
References
- 1 2 Korte, Gregory (May 11, 2016). "Obama signs trade secrets bill, allowing companies to sue". USA Today.
- ↑ Beck, Russell (February 4, 2017). "Trade Secrets Acts Compared to the UTSA" (PDF). FairCompetitionLaw.com.
- 1 2 3 Goldman, Eric (April 28, 2016). "The New 'Defend Trade Secrets Act' Is The Biggest IP Development In Years". Forbes.
- ↑ Henry Schein, Inc. v. Cook, 191 F.Supp. 3d 1072 (N.D. Cal. 2016).
- 1 2 Pearce, T. Vann, Jr.; Ingles, Matthew (June 30, 2016). "California Federal Court First to Rule Under New Defend Trade Secrets Act of 2016". Trade Secrets Watch. Orrick, Herrington & Sutcliffe LLP. Retrieved June 7, 2017.
- ↑ Dalmatia Import Group, Inc. v. FoodMatch Inc. et al., no. 16-cv-02767 (E.D. Pa. Feb. 24, 2017).
- 1 2 "Dalmatia Import Group, Inc. v. FoodMatch Inc. et al.". Trade Secrets Institute. Retrieved June 7, 2017.
- ↑ Songer, Michael J.; Tehrani, Ali (April 7, 2017). "The First DTSA Verdict: $500,000 for Misappropriation of a Fig Spread Recipe". Trade Secrets Trends. Retrieved June 7, 2017.
- ↑ Graham, Scott (February 27, 2017). "Jam Maker Jars $2.5M Verdict in Trade Secrets Case". National Law Journal. Retrieved June 7, 2017.
External links
- S. 1890 at congress.gov