The Defend Trade Secrets Act of 2016 was signed into law by President Obama on May 11, 2016. While the DTSA has been on the books for over a year, relatively few courts have addressed the ex parte seizure provision and even fewer have actually granted a seizure under the DTSA. This is likely due to the DTSA’s requirement that courts order property seizures only in extraordinary circumstances. In other words, courts are hesitant to grant DTSA ex parte seizure requests unless it is clear that the alleged misappropriator would disobey a TRO or preliminary injunction, or otherwise destroy, move, or hide trade secrets. Courts continue to favor FRCP 65 TROs and preliminary injunctions to protect trade secrets from disclosure or destruction. Under FRCP 65, courts can issue TROs and preliminary injunctions, but cannot order U.S. Marshalls to seize property from a defendant without notice. The following cases are illustrative.
On July 31, 2015, TSW continued our reporting of the continuing saga of Congress’ attempts to establish a federal right of civil action for trade secrets misappropriation by covering the introduction of the “Defend Trade Secrets Act of 2015” (“2015 DTSA”). The 2015 DTSA was introduced in identical form in the House (H.R. 3326) by Rep. Doug Collins (R-GA) and in the Senate (S. 1890) by Sen. Orrin Hatch (R-UT). In prior posts, we covered the introduction of the Defend Trade Secrets Act of 2014 in both the House (the “2014 House Bill”) and the Senate and outlined the differences between the two, noting that the 2014 House Bill was much more protective of defendants facing ex parte seizure orders. READ MORE
The Trade Secrets Act of 2014 (H.R. 5233) was introduced in the House by Congressman George Holding on July 29, 2014. Representatives Steve Chabot (R-OH), Howard Coble (R-NC), John Conyers (D-MI), Hakeem Jeffries (D-NY), and Jerrold Nadler (D-NY), are cosponsors of the bill.
While the House Bill is very similar to the Bill introduced in the Senate on April 29, 2014 Defend Trade Secrets Act of 2014 (DTSA) (S. 2267), there are some major differences between the two. Specifically, the House Bill is much more protective of defendants facing ex parte seizure orders. READ MORE