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Until now, trade secret law in the United States was left to the individual states. The Uniform Trade Secrets Act, or variations thereof, had been adopted by 47 states and the District of Columbia.
Now, for the first time, federal civil protection exists for trade secrets after President Obama signed the Defend Trade Secrets Act of 2016 (DTSA), effective May 11. 2016, which provides for federal jurisdiction and a civil action for misappropriation of trade secrets in interstate or foreign commerce. The DTSA provides:
An owner of a trade secret that is misappropriated may bring a civil action under this subsection if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.
Employers should review their employment contracts, and any contracts dealing with confidentiality or non-disclosure of trade secrets.
The following provisions of the DTSA are of particular note:
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