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This is a boom time for trade secret litigation in the U.S. The underlying conditions driving the boom include the growing mobility of the global workforce, the ease with which electronic data can be captured and moved, the emergence of nation-state actors participating in the theft of information in the global marketplace, and the time-limited benefits and uncertainties of patent litigation. Also fueling this rise are the federalization of trade secret laws with the Defend Trade Secrets Act (DTSA), the extraterritorial application of such laws to acts committed outside the U.S., and the availability of robust legal remedies in the U.S. for trade secret misappropriation. For companies seeking remedy against trade secret misappropriation, the United States offers unparalleled advantages as a legal venue: extraterritorial application of its laws combined with a broad range of monetary remedies in U.S. District Courts and the powerful exclusion of goods at the border offered in U.S. International Trade Commission (ITC) Section 337 proceedings. For international companies doing or planning to do business in the U.S., understanding the risks of lawsuit is now critical.Continue Reading The Proliferation of Trade Secret Misappropriation and U.S. Enforcement Choices

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In several recent decisions, district courts have held that liability under the Defend Trade Secrets Act can extend to extraterritorial defendants.  As set forth by Sheppard Mullin’s Tyler Baker in a prior blog post, the extraterritorial reach of the DTSA is rapidly expanding.  Non-U.S. Companies and the DTSA: Parameters of a Developing Reality | Trade Secrets Law Blog (citing vPersonalize Inc. v. Magnetize Consultants Ltd., 437 F. Supp. 3d 860, 878 (W.D. Wash. 2020); Micron Tech. Inc. v. United Microelectronics Corp., No. 17-cv-06932-MMC, 2019 WL 1959487 (N.D. Ca. May 2, 2019); Motorola Solutions Inc. v. Hytera Commc’ns Corp., 436 F.Supp.3d 1150, 1165 (N.D. Ill. 2020); ProV In’tl Inc. v. Lucca, No. 8:19-cv-978-T-23AAS, 2019 WL 5578880 (M.D. Fla. Oct. 29, 2019)).  As Mr. Baker observed, these rulings create a risk for foreign entities regarding trade secret theft, as federal courts have held that foreign actors may be subject to liability under the DTSA if the act in furtherance of the misappropriation occurred in the United States.
Continue Reading The DTSA as a Tool for Foreign Entities’ Enforcement of Trade Secrets: A New Legal Frontier