There has been recent major trade secret reform that affects the protection
afforded to trade secrets. Employers should become familiar with the Defend
Trade Secrets Act of 2016 (DTSA) at it imposes new and additional notice
obligations on employers and it affects the protection afforded to employers’
One of the most significant attributes of the DTSA is that it federally
codifies trade secret law. Previously, lawsuits for trade secret theft
have been brought only in state courts under state law. The DTSA establishes
a new federal cause of action for trade secret misappropriation. This
is an important benefit to employers, especially those that operate nationally,
as now plaintiff employers will have access to federal courts and federal
courts will have jurisdiction to issue injunctive relief as well as award
compensatory damages and exemplary damages (for willful and malicious
Additionally, the DTSA provides an important new tool for plaintiff employers
to obtain an
ex parte court order to seize a trade secret by law enforcement and bring it within
the custody of the court.
However, the DTSA does not provide automatic protections for all employers.
The DTSA imposes new and additional notice obligations on employers, which
such notice is necessary for an employer to obtain an award of exemplary
damages or attorneys’ fees under the DTSA in federal courts.
Thus, it is imperative that employers retain legal counsel to review and,
if necessary, modify all existing all employment, confidentiality and
proprietary ownership agreements to include a standard notification clause
and/or to establish a corporate trade secret policy containing the required
For more information about the DTSA and how to protect your business’
call us to speak with our knowledgeable Florida business litigation attorneys
at Rosenthal Law Group today.