The Defend Trade Secrets Act (DTSA) celebrated its one-year anniversary on May 11, 2017. The DTSA is the most significant expansion of intellectual property law since the Lanham Act was passed in the 1940s. After one year of litigation, it is still too early to tell how much impact the DTSA has made on trade secret law in California. Nevertheless, even a one-year anniversary is worth marking.
The Differences Between the California Uniform Trade Secret Act and the DTSA
DTSA claims can be asserted exclusively in federal court. Prior to the passage of the DTSA, civil claims for trade secret misappropriation were typically governed by state law. The California Uniform Trade Secret Law (CUTSA) broadly preempts common law claims based on the same nucleus of facts. In contrast, the DTSA does not preempt any provisions of law, including state trade secret laws, such that a plaintiff filing suit in California can bring both a DTSA and CUTSA claim in federal court.
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