The Defend Trade Secrets Act of 2016: Important Information About Protecting Trade Secrets

The Defend Trade Secrets Act of 2016: Important Information About Protecting Trade Secrets | Bart Eagle

{4:30 minutes to read} Recently, I wrote about non-compete agreements, the enforcement of which are subjective, from judge to judge and even from state to state. In the article, I discussed some of the factors that may lead a court to determine whether a non-compete agreement is reasonable under the circumstances and when one is not. Far less problematic—and controversial—is a company’s right to protect its trade secrets; almost everyone would agree that a company has a legitimate interest in doing so. One way to try and accomplish this is to include clauses in employment agreements prohibiting an employee from disclosing trade secrets, about which they learn during their employment. A company’s interest in protecting its trade secrets was recently acknowledged by the passage of the Defend Trade Secrets Act of 2016 (the “DTSA”), a federal statute that was signed into law in May 2016.

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