Legal Protections for U.S. Trade Secrets

U.S. companies rely on trade secrets for a competitive advantage. These companies invest heavily in research and development in the U.S., and they need to protect their inventions to recoup their investments. While U.S. patent law offers some protection, it largely stops at the U.S. border, relying on different patent regimes for enforcement overseas. For this and other reasons, many companies choose trade secret protection, with its potentially unlimited term, for their most valuable inventions. Fortunately for them, recent developments have extended the reach of U.S. trade secret law to overseas misappropriation by foreign nationals, so long as there is some connection with activities in the U.S. This article examines how the federal district courts have recently enhanced the relief afforded U.S. trade secret holders under the Defend Trade Secrets Act (DTSA) for the overseas misappropriation of trade secrets, and includes practice tips for those considering trade secret litigation in federal court. The second article of this two-part series will explain how the U.S. International Trade Commission allows IP rights holders to address unfair methods of competition caused by the overseas misappropriation of trade secrets. Together, these bodies of law provide extensive protection against overseas misappropriation of trade secrets and establish an effective framework for protecting U.S. trade secret holders. Read the full article here.