On May 11, 2016, President Obama signed into law the landmark Defend Trade Secrets Act (DTSA), creating the first federal civil misappropriation of trade secrets claim. 18 U.S.C. §1836. Since DTSA’s passage, plaintiffs have enthusiastically embraced the federal forum with over 400 DTSA cases filed in district courts (including complaints amended to add a DTSA claim), and over 15% filed in California district courts.
As we come upon the first year of DTSA, some trends have emerged: (1) DTSA seizure requests are seldom sought or granted; (2) it remains unclear whether California trade secrets plaintiffs are required to identify trade secrets with reasonable particularity before commencing discovery, consistent with Code of Civil Procedure §2019.210, which applies to state law claims; and (3) federal courts may not yet be better for plaintiffs.
Seizure Applications—Rarely Requested or Granted
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