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Non-Compete and Trade Secrets Blog

Posts tagged Defend Trade Secrets Act.

Companies need to follow best recruiting and hiring practices when bringing on a new employee, particularly from a competitor, to ensure that the employee is not taking with them trade secrets from the prior employer, otherwise a third-party misappropriation lawsuit may be around the corner resulting in expensive and time-consuming litigation.

Continued misappropriation claims that originate prior to enactment are not permitted under the UTSA but the DTSA is silent on the issue. Nevertheless, a growing body of case law is holding that such continued misappropriation claims are viable under the DTSA pointing out a key difference litigators need to be aware of in the statutes that otherwise share many similarities.

The Defend Trade Secrets Act (“DTSA”) allow employers to provide their workforce with notice of the DTSA whistleblower immunities by “cross-referencing a policy document” but the statute gives no guidance on what the “policy document” is to say, how it should be “cross-referenced,” or if the “policy document” should be provided to employees? This post endeavors to provide answers to these questions.

On Feb. 24, 2017, at the University of Denver, come join Fisher Phillips attorneys and a prominent of practitioners and state and federal judges at the first ever conference on the new Defend Trade Secrets Acts (DTSA), which became effective in mid-2016.

When the Defend Trade Secret Act (“DTSA”) was enacted much was written about its unique remedy provision – the ex parte seizure of property. There were numerous questions about how federal courts would interpret and apply the provision. A federal court in California recently gave the first answer.

This week, President Obama signed into law the Defend Trade Secrets Act.  Among its many interesting provisions is a detailed procedure for a party to request, ex parte, the seizure of property in order to "prevent the propagation or dissemination" of the trade secret at issue. Such an order would only be available in "extraordinary circumstances." This could be a very powerful tool in a fight against misappropriation of trade secrets as it could impair the defendant's ability to conduct business.

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