On May 11, 2016, President Barack Obama signed the Defend Trade Secrets Act (DTSA) into law, a sweeping new piece of legislation effective immediately that provides federal question jurisdiction over claims involving misappropriation of trade secrets.
The DTSA is an amendment to the Economic Espionage Act, which previously only allowed for criminal cases filed by the Department of Justice. Significantly, the DTSA gives employers nationwide access to federal courts to litigate their misappropriation claims and affords companies greater predictability in the outcome of their trade secret litigation than the current state-by-state system provides. Additionally, the ability to pursue misappropriation claims under federal law offers employers a new realm of remedies, particularly ex parte seizure, not traditionally available under state trade secret acts.
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