12/20/2023 0 Comments Defend trade secrets act![]() ![]() ![]() Rubens Dalle Lucca, the court granted a motion to dismiss where “he amended complaint contain no allegation suggesting that the defendants attempted to recruit an employee from the United States, that the defendants acquired in the United States the … ‘trade secrets,’ or that the defendants used the trade secrets in the United States.” In reviewing areas of the complaint where the plaintiffs alleged acts that occurred domestically, the court noted that the amended complaint alleged that one of the defendants traveled to an event in Nevada to tender his resignation to the plaintiffs’ CEO. However, the requirement for establishing an “act in furtherance” as per the DTSA must still be properly pled. ![]() For example, a foreign company could be liable for misappropriation for using trade secrets its employees acquired from their previous non-United States employers to provide a competing service in the United States. As another example, a foreign individual’s misappropriation of trade secrets that occurred during his routine business trips to his employer’s American offices qualified as “an act in furtherance of the offense … committed in the United States” In 2019, several cases demonstrated that an “act in furtherance of” misappropriation under the DTSA is read broadly by some courts, reaching a wide range of conduct. 247 (2010), which generally narrowed application of U.S. 1837(2), it applies to conduct occurring outside the United States if an “act in furtherance of the offense was committed in the United States.” Careful consideration of the scope of this extraterritoriality provision is necessary in light of the U.S. citizen, permanent resident, or entity incorporated in the United States. 1837(1), it applies if the offender is a U.S. The DTSA applies to conduct that occurs outside the United States under two sets of circumstances. The DTSA Applies To Acts Of Misappropriation Occurring Entirely Outside Of The United States As we approach the fourth anniversary of the Act’s passage, we look back at how the DTSA developed throughout 2019 and the beginning of this year. We have been following the DTSA since its enactment, and our previous advisories, covering the utilization of the Act since its passage, can be found on our website. In those advisories we focused on how trade secret law has changed in the wake of the DTSA and how, in many ways, it has stayed the same. Finally, the Act also grants immunity to whistleblowers who disclose a trade secret to the government in the course of reporting misconduct and affirmatively imposes a duty on employers to advise employees, contractors and consultants of these protections. Second, the DTSA provides owners of trade secrets with a mechanism to seize property to prevent propagation or dissemination of the trade secret in certain circumstances. ![]() The Defend Trade Secrets Act of 2016 (“DTSA” or “Act”), signed into law in May of 2016, has three main components. First, the Act creates a streamlined way into federal court for claims of trade secret misappropriation that relate to a product or service used in interstate commerce (a conceptually low threshold but, as discussed below, one that must be pleaded), and provides for meaningful penalties of double damages and attorney’s fees for willful and malicious misappropriation. ![]()
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