The New Trade Secret Law Impact on Business

November 28, 2016
Post by Patricia A. Sweeney - Of Counsel

     It's just nine months old, but the new Defend Trade Secrets Act provides for a new stronger defense of key intellectual property.  Enacted May 11, 2016, the law provides for the first time for a uniform federal law protecting trade secrets.  Previously, trade secrets could be enforced only according to variable state law, and in state courts.  Now a federal court action is possible for misappropriation of trade secrets.  However, there are extra steps companies will want to take to ensure their trade secrets are protected.
     In order to take advantage of the federal law, agreements entered into with employees after May 11, 2016 need to add reference to the fact that there is a "whistle blower"exception to revealing trade secrets.  This is a good time to check agreements with employees to not only add such language, but assure employee, contractor and consultant agreements make proper reference to protection of company trade secrets, and to determine if you need to add reference to consent to US jurisdiction.
     Trade secret protection can be available where reasonable measures are taken to keep the information secret, and value is derived from the information not being generally known.  The law prohibits misappropriation of trade secrets, but remember that reverse engineering or independent invention is not misappropriation.  The new law adds teeth in providing for seizure of property in limited circumstances, where necessary to prevent the trade secret from being further leaked.  Combined with patents, trade secrets provide a different avenue of protection for intellectual property assets.

Post Categories

Comments (0)
Post a Comment

Captcha Image
Return to the Filewrapper Blog

Search Posts


The attorneys of McKee, Voorhees & Sease, P.L.C. designed this blog as an informational and educational resource about intellectual property law for our clients, other attorneys, and the public as a whole. Our goal is to provide cutting-edge information about recent developments in intellectual property law, including relevant case law updates, proposed legislation, and intellectual property law in the news.


McKee, Voorhees & Sease, P.L.C. provides this blog for general informational purposes only. By using this blog, you agree that the information on this blog does not constitute legal or other professional advice and no attorney-client or other relationship is created between you and McKee, Voorhees & Sease, P.L.C. Do not consider this blog to be a substitute for obtaining legal advice from a qualified, licensed attorney. While we try to revise this blog on a regular basis, it may not reflect the most current legal developments. We consciously refrain from expressing opinions on this blog and instead, offer it as a form of information and education, however if there appears an expression of opinion, realize that those views are indicative of the individual and not of the firm as a whole.

Sign Up For Our Newsletter

Enter your name and email address to receive the latest news and updates from us and our attorneys.

Subscribe to: MVS Newsletter

Subscribe to: Filewrapper® Blog Updates

  I have read and agree to the terms and conditions of McKee, Vorhees & Sease, P.L.C.