A harmonized trade secrets protection regime is coming to Europe and the US. Until now, there has been a fragmented approach to trade secrets across Europe, with some countries having specific trade secrets legislation and others relying on unfair competition, tort, or contract law. Trade secret protection in the US has been somewhat less fragmented, as almost every state has adopted some version of the Uniform Trade Secrets Act (“Uniform Act”) (New York and Massachusetts being notable exceptions). On May 11, 2016, the President signed into law the Defend Trade Secrets Act (“US DTSA”), which creates a federal cause of action with substantive elements that are very similar to the Uniform Act. For practical considerations regarding the US DTSA, see our recent publication.

In November 2013, the European Commission proposed a new trade secrets directive with the aim of harmonizing the law and thereby encouraging European cross-border investment, competition, and innovation. Following much debate, the “Directive on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure” (the “EU Directive”) was finally adopted by the European Parliament on April 14, 2016 and by the Council on May 26, 2016. EU Member States have two years from adoption to implement the EU Directive into their national laws.