Trade Secrets Claims Reach Federal Court: New Law Changes Jurisdiction, Remedies and Duties

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Until May 12, 2016, trade secret law was the only area of intellectual property law left largely to state courts and state law. But no longer. On May 12, President Obama signed the Defend Trade Secrets Act of 2016, Pub. L. No. 114-153. It establishes a new federal civil remedy for the misappropriation of trade secrets, including an innovative ex parte civil seizure provision, provides non-exclusive federal question jurisdiction for claims arising under the Act, and creates new duties–effective immediately–for employers, contractors and consultants. Much remains to be sorted out by litigation, but several things about the new Act are clear and warrant immediate attention.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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