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?