• The Federal Defend Trade Secrets Act: Impact on Employers
  • July 26, 2016 | Authors: Charles H. Kaplan; Galit Kierkut; David I. Rosen
  • Law Firms: Sills Cummis & Gross P.C. - New York Office; Sills Cummis & Gross P.C. - Newark Office
  • On May 11 2016, President Obama signed The Defend Trade Secrets Act (“DTSA” or the “Act”). Effective immediately, the DTSA creates a federal civil cause of action that allows companies to file civil lawsuits for trade secret theft under the federal Economic Espionage Act. Before the passage and signing of the DTSA, the statute only provided for criminal cases brought by prosecutors. Civil trade secret cases had to be brought under state law. While the DTSA provides an added layer of protection for companies’ trade secrets, its impact on employers is more uncertain.