To succeed under the DTSA, a plaintiff must demonstrate both that it took reasonable measures to keep the information actually secret, and that the secret in question has economic value independent of not being generally known or available to ascertain by the public. Defining a Trade SecretĪ company suing under the DTSA must prove that what has been misappropriated is in fact a trade secret. Although our firm’s matters in recent years in this arena have been on behalf of defendants and prospective defendants, this article will hopefully provide some helpful suggestions for both plaintiffs and defendants under the DTSA. The law states, in part, that “n owner of a trade secret that is misappropriated may bring a civil action under this subsection if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.” 1 Employers should consider invoking the statute in order to seek to prevent further disclosure of information they consider to be trade secrets if they: (i) believe such information may have already been exposed (ii) seek to enjoin any further dissemination (iii) seek to recover the alleged trade secrets and/or (iv) seek to obtain monetary damages for losses related to the misappropriation, if any.īut there are quite a few defenses that defendants can assert to such an action, as was the case with the former senior partner of a preeminent consulting firm which our firm recently represented in an action in the District of New Jersey which was dismissed with prejudice in connection with settlements between the consulting firm and: (i) our client’s subsequent employer and (ii) our client. The DTSA created a private federal cause of action for misappropriate of trade secrets for the first time. As a follow-up to our last article concerning misappropriation of trade secrets litigation, we are devoting this article to a review of the litigations which have arisen out of this relatively new statute. The Defend Trade Secrets Act of 2016 (“DTSA”) turned five years old on May 11, 2021.
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