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May 2, 2016 • News

Defend Trade Secrets Act Signed Into Law; Implications for Employers

Last Updated: 11 May 2016

On May 11, 2016, President Barack Obama signed the Defend Trade Secrets Act (DTSA) into law. The DTSA extends the federal Economic Espionage Act by allowing businesses to file civil lawsuits in federal court in trade secret cases. Courts in such cases would be authorized to issue orders for the seizure of property when necessary to prevent disclosure of the trade secret. The DTSA also provides immunity to certain whistleblowers for reporting trade secret violations as part of government investigations and requires employers to notify employees of this right. This disclosure would appear in “any contract or agreement with an employee that governs the use of a trade secret or other confidential information.” See the President’s remarks here; see the history and text of the bill (S. 1890) here

If you have questions about how the DTSA could impact you, contact ES&A at (808) 729-9400.

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