Explaining the Defend Trade Secrets Act

In Brief

• The Defend Trade Secrets Act is important new legislation that gives American companies the opportunity to protect against and remedy misappropriation of important propriety information in federal court.
• Salient provisions of the DTSA include a federal cause of action, uniform definitions for the critical terms “trade secret” and “misappropriation,” a new civil seizure mechanism, and whistleblower immunity.
• Open questions remain about the breadth of the DTSA given its recent enactment, but by providing an additional avenue for the protection of IP, the DTSA also provides enhanced value to shareholders.