Costello Law Corporation
We Can Help You, Call Us Today
This Attorney is Lead Counsel Rated. Click here for more Information.

Understanding the Defend Trade Secrets Act of 2016

This was an important year for trade secret legislation. Back on May 11, the Defend Trade Secrets Act (DTSA) of 2016 was signed into law. The bill, which allows for federal jurisdiction in matters regarding trade secret theft, was passed unanimously in the Senate and ratified by the house 410-2. 

The DTSA is the most significant trade secret reform legislation to occur in decades. It allows for greater federal involvement in trade secret protections. If you or your company have acquired trade secrets, it is important to understand the new legislation so you can protect your intellectual property.

With the DTSA, those with claims of trade secret misappropriation may seek litigation in the federal courts. This is particularly beneficial for trade secrets used in interstate or foreign commerce. Prior to this, all trade secret litigation was limited to the state court system. 

In addition to the right to federal court action against misappropriation, the DTSA also provides for the following:

  • Statute of limitation for legal action up to three years 
  • Ex parte seizure orders in some cases to preserve evidence or as a remedy to trade secret misappropriation
  • Stronger trade secret protections during civil and criminal litigation, including rights to maintain confidentiality of a trade secret
  • Robust remedies for misappropriation, including recovery of the actual loss and reasonable royalties for the unauthorized disclosure
  • Whistleblower protections for reporting suspected trade secret violations
  • Digital protection for trade secrets
  • Increased criminal penalties for misappropriation of trade secrets

As with any intellectual property issue, the best defense against theft is to have solid trade secret protections in place for your company. When litigation is necessary, it is also necessary to obtain representation from an experienced intellectual property attorney.

No Comments

Leave a comment
Comment Information

Contact Us Today

To protect your valuable idea, contact our lawyers at Costello Law Corporation to set up an initial consultation. We are ready to assist you in any intellectual property issue.

Get Started

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Map & Directions

Costello Law Corporation

Costello Law Corporation
2267 Lava Ridge Court
Suite 210
Roseville, CA 95661

Phone: 916-520-3360
Fax: 916-441-4254
Map & Directions

Email Us