Regulation

Trade Secret Misappropriation by Ex-Employees in China: How to Confront “Inside Theft”

Article 123 of the General Provisions of the Civil Law of the People’s Republic of China (effective Oct. 1, 2017) confirmed that trade secrets are intellectual property, signifying China’s recognition of the importance of trade secret protection.  Nevertheless, trade secret misappropriation remains rampant in the country.  READ MORE

DTSA Immunity: A Plaintiff’s Dream Or A Burdensome Nightmare?

If you are a regular reader of TSW, you know we have been monitoring developments relating to the Defend Trade Secrets Act of 2016 (DTSA). While the Northern District of California was the first court to enter a written opinion under the DTSA, case law is continuing to develop across the country, including in the First Circuit. READ MORE

No Way Around It: SB 1241 Further Restricts Non-Compete Agreements For California Workers

Companies often seek to protect their trade secrets by requiring employees to sign non-compete agreements. California law invalidates such provisions except in very limited circumstances. See Bus. & Prof. Code §§ 16600 et seq. With the recent passage of a new statute, the ability of employers to enforce such agreements against California employees is more restricted than ever.   READ MORE

Can You Keep A Secret? The European Union’s New Directive on Trade Secrets and its Impacts on Whistleblowers

It is no secret that the European Union’s (“EU”) Directive on Trade Secrets was a long time in the making. The Directive was first proposed in November 2013. After roughly two years of debate and revision, the revised Directive was published in December 2015. On April 14, 2016, the debate ended, and the European Parliament voted to adopt the Directive with no further amendments. The resolution approving the Directive passed by 503 votes to 131 votes with 18 abstentions. This morning, the EU Council unanimously adopted the Directive on Trade Secrets. READ MORE

BREAKING: President Obama Signs Defend Trade Secrets Act Into Law

This afternoon, as anticipated, President Barack Obama signed the Defend Trade Secrets Act into law, wrapping up a lengthy bipartisan effort to bring trade secrets under federal system law. Some observed that the fact that President Obama chose to sign the bill into law publicly indicates the importance of the new law to the administration. READ MORE

In Biggest Expansion of IP Law in 70 Years, Congress Passes Defend Trade Secrets Act

Yesterday Congress passed federal trade secrets legislation (the “Defend Trade Secrets Act” or “DTSA”) by an overwhelming 410-2 vote.

The Wall Street Journal notes that the DTSA has been called the “most significant expansion” of federal intellectual property law in 70 years (since the Lanham Act was passed in 1946 to provide federal protection to trademarks). House Judiciary Chair Bob Goodlatte said the measure “will help American innovators protect their intellectual property from criminal theft by foreign agents and those engaging in economic espionage.” READ MORE

Federal Law or Another False Alarm? Senate Passes the Defend Trade Secrets Act of 2016 87-0. 

Relief may soon be coming for trade secrets plaintiffs longing for federal court. Last year we covered the introduction of the Defend Trade Secrets Act (DTSA), compared it to the Uniform Trade Secrets Act (UTSA), and questioned whether federal court under this new law would be a preferable venue to plaintiffs. Since then, the bill, like the many that came before it, died in Congress. READ MORE

Senate Bill in Georgia Seeks to Expand Scope of Trade Secret Protection

On February 2, 2016, Georgia State Senator Hunter Hill introduced Senate Bill 321 in the Georgia Senate. The bill is entitled “Commerce and Trade; state government; protections against public disclosure of certain information.” The bill has 36 co-sponsors, all of whom, like Hill, are Republican.  READ MORE

New Year, New Progress: The Defend Trade Secrets Act Reports Out From the Senate Judiciary Committee

As previously reported on TSW, the road to federal right of action for trade secrets misappropriation has been a long one. In the absence of a federal trade secrets law, the Economic Espionage Act (“EEA”) and various state versions of the Uniform Trade Secret Act (“UTSA”) have filled the gap with an uneven patchwork of legislation and no civil remedies at the federal level. This might soon change. On January 27, 2016 the U.S. Senate Committee on the Judiciary passed the Defend Trade Secrets Act of 2016 (“DTSA”), sponsored by Sens. Orrin Hatch, R-Utah, and Chris Coons, D-Del. The legislation was also backed by a deep pool of companies ranging from Silicon Valley startups to corporate giants concerned about the hundreds of billions of dollars reportedly lost annually as a result of trade secret theft. READ MORE