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DTSA could lead to increased trade secret litigation

As we have written about previously, trade secrets are an important and integral part of a company's success. Protecting trade secrets and ensuring that the information surrounding these trade secrets is not released are central tenants to legally upholding your trade secret. In 2016, Congress passed a new law that gives companies a new tool to protect their trade secrets.

The Defend Trade Secrets Act (DTSA) was passed last year, and many people expect that this law will dramatically increase the amount of trade secret litigation we see in 2017. Trade secret litigation usually relies on state and common laws, but the DTSA is a federal law that also gives companies the ability to seek a seizure order for the company utilizing, stealing and propagating trade secrets.

Of course, even with increased trade secret litigation, there will always be questions about the legitimacy of any individual case, as well as questions about how a seizure order -- or any remedy applied in a trade litigation case -- will be handled. These are always complicated questions with tricky legal processes that can take quite a bit of time to sort out.

This is why it is so important for companies to have legal help when trade secret litigation comes knocking at your door. Smaller companies can often struggle to protect their trade secrets, or even deal with trade secret litigation in the first place. Consult with a lawyer early in the process to ensure your case is being handled appropriately.

Source: Lexology, "Trade Secrets Litigation Likely to Surge in 2017 Under the DTSA," Cozen O'Connor, Dec. 30, 2016

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