Earlier this month, the U.S. Senate Judiciary Committee considered an important piece of intellectual property legislation. The Defend Trade Secrets Act (DTSA) aims to modernize and streamline the country’s trade secret laws by creating a federal claim for trade secret misappropriation.
Senators Orrin Hatch (R-UT) and Chris Coons (D-DE) and Representatives Doug Collins (R-GA) and Jerrold Nadler (D-NY) introduced the bi-partisan legislation. Despite broad support, the current bill is the third time lawmakers have attempted to pass federal trade secret legislation, which suggests the bill may still face an uphill battle.
Why a new federal trade secrets law might be put into effect
As our intellectual property lawyers have previously highlighted on this blog, U.S. businesses lose billions of dollars every year due to trade secret theft at the hands of employees, competitors, and even foreign governments. While victims of trade secret misappropriation can bring civil suits under state law and the federal government can pursue criminal sanctions under the Economic Espionage Act (EEA), trade secrets do not receive the same level of federal protection as other forms of intellectual property.
The Defend Trade Secrets Act
The Defend Trade Secrets Act is intended to provide uniform remedies for misappropriation of trade secrets. The statute allows civil claims for trade secret misappropriation to be filed in federal court and also provides for injunctive relief to prevent any actual or threatened misappropriation of trade secrets. The statute of limitations would be five years, and treble damages and/or attorneys’ fees would be available in cases of willful and malicious misappropriation.
Sponsors of the trade secret bill include Sens. Orrin Hatch, R-Utah, Chris Coons, D-Del., Jeff Flake, R-Ariz., Dick Durbin, D-Ill., Thom Tillis, R-N.C., and Tammy Baldwin, D-Wisc., along with Reps. Doug Collins, R-Ga., and Jerrold Nadler, D-N.Y. In announcing the bill, Sen. Hatch stated:
The Defend Trade Secrets Act of 2015 establishes a uniform standard for what constitutes trade secret theft and will give U.S. companies the ability to protect their trade secrets in federal court. I hope Congress will act quickly to pass this bipartisan, bicameral bill that will help American companies maintain their competitive advantage both here and abroad.
Several large companies and business organizations have already voiced their support for the bill via a letter of support. Signatories include the Association of Global Automakers, Inc., Eli Lilly and Company, General Electric, Honda, IBM, NIKE, the National Association of Manufacturers, and the U.S. Chamber of Commerce.
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
