President Obama signed the Defend Trade Secrets Act (“DTSA”) that protects intellectual property, specifically trade secrets, against misappropriation. The DTSA expands protection available under the Economic Espionage Act of 1996 (“EEA”).

Misappropriation of trade secrets refers to the acquisition of a trade secret by improper means. Misappropriation of a trade secret may also refer to the improper disclosure or use of a trade secret of a third party without the express or implied consent of the owner of the trade secret. Under the DTSA, misappropriation includes: without permission (a) obtaining a trade secret that was knowingly obtained through improper means or (b) disclosing or using a trade secret without knowing either (1) that it is a trade secret or (2) that it was obtained through “improper means.” The DTSA defines “improper means” as “theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.” Noteworthy is the fact that the DTSA does not consider “reverse engineering, independent derivation, or any other lawful means of acquisition” to be misappropriation. This stance is consistent with EEA existing law that allows for such acquisition to potentially be defenses.

For more information on the DTSA, see our post: What are the Basics of the Defend Trade Secrets Act?

Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.

This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.

What is the Defend Trade Secrets Act?

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