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Following President Obama’s signing of the federal Defend Trade Secrets Act (“DTSA” or the “Act”) into law last week, parties are beginning to file lawsuits asserting claims under the DTSA. As widely reported, before the DTSA’s enactment, civil trade secret legislation was solely a creature of state law.  Consequently, absent another basis for federal jurisdiction, parties could only bring a civil trade secret claim in state court. The DTSA dramatically changed trade secret litigation practice by opening the door to federal court through creation of a federal civil trade secret misappropriation cause of action.

Application of the DTSA, however, is not retroactive. By the express language of the Act, it only applies to acts of misappropriation occurring on or after May 11, 2016, the date on which it was enacted.
Continue Reading First Round of Defend Trade Secrets Act Complaints Alleging Misappropriation Activity Both Before and After DTSA’s Enactment: Will They Stick?

For years, employers have sought access to federal courts for trade secret misappropriation claims against departing employees who have taken the employer’s proprietary information to use in a new venture or for a new employer. Absent diversity, employers’ options to secure federal jurisdiction were limited, however.

In the 2000s, employers began including claims under the

Eastern District of Texas District Judge Rodney Gilstrap, who has the busiest patent docket in the United States, recently announced a new model procedure for handling the onslaught of so-called “101” or “Alice” motions. “Alice” refers to the United States Supreme Court’s June 2014 decision in Alice Corp. Pty. Ltd. v.