Trade Secret Protection Gets a Federal Shot in the Arm
Trade secrets are frequently one of the most powerful forms of intellectual property that a company has in its competitive arsenal. Particularly given the ongoing interest in whittling away at the property rights of patent holders (e.g. the enhanced IPR process, and even the more tame VENUE Act), trade secrets are a critical means for firms to obtain and retain advantages in highly competitive markets.
Yet, historically the scope of federal recognition of these quasi-property rights was exceedingly circumscribed. That is until yesterday when President Obama signed the Defend Trade Secrets Act (“DTSA”) into law. The Act is designed to create a uniform body of federal law that will allow jurisdiction-straddling entities to more effectively enforce their often very valuable interests in proprietary information. Despite the handful of critics of this effort over the last few years, the law passed Congress with minimal friction, and, at least at this early stage, seems like a fairly laudable step in the right direction.