Trade secrets provide significant value for American companies. Take, for example, the formula for Coca-Cola. The exact formula for the popular softdrink is a closely guarded secret, and Coca-Cola’s exclusive ability to make its soft-drink is extremely valuable—indeed, it is the foundation of Coca-Cola’s entire business. Given the immense value of trade secrets to American companies, the prospect of trade secret theft is a serious threat. The Defend Trade Secrets Act provides a new, powerful tool to combat trade secret theft in federal court. This article examines the provisions and protections of the DTSA, and explains the aspects of the law that employers and trade secret owners must be aware of in order to fully take advantage of the newest tool to combat trade secret theft.

A Federal Cause of Action -

The DTSA amends the Economic Espionage Act (EEA) to create, for the first time, a federal civil cause of action for trade secret misappropriation. Under the DTSA, a party whose trade secrets were stolen can bring an action in federal court to stop any ongoing theft, prevent further theft, and seek damages for a theft that has already occurred. Specifically, a trade secret owner may bring a civil action in federal court for misappropriation where ‘‘the trade secret is related to a product or service used in, or intended for use in, interstate of foreign commerce.’’

Originally published in Daily Labor Report on October 24, 2016.