Defend Trade Secrets Act – Wikipedia


The Defend Trade Secrets Act, 18 USC § 1836, was enacted in 2016. It is important because it provides federal jurisdiction for disputes over trade secrets. This allows the plaintiff (usually a company claiming that its trade secrets were stolen by the defendant) to bring its claims in federal court.

The elements for a successful claim under the DTSA are:  (1) the existence of a trade secret that relates to a product or service used in, or intended for use in, interstate or foreign commerce; (2) the acquisition of the trade secret, or the use or disclosure of the trade secret without consent; and (3) the person acquiring, using, or disclosing the trade secret knew or had reason to know that the trade secret was acquired by improper means.” Arctic Energy Servs., LLC v. Neal, No. 18-cv-00108-PAB-KLM, 2018 WL 1010939, at *2 (D. Colo. Feb. 22, 2018) (citing 18 U.S.C. §1836(b)(1); 18 U.S.C. § 1839. The DTSA defines “trade secret” broadly to include “all forms and types of financial, business, scientific, technical, economic, or engineering information” so long as “the owner thereof has taken reasonable measures to keep such information secret” and “the information derives independent economic value, actual or potential, from not being generally known to,” or ascertainable by, another person. 18 U.S.C. § 1839(3). See Lowenbro Inspection v. Sommerfield, 18 CV 01943 (D. Colo. August 2018).

via Defend Trade Secrets Act – Wikipedia

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