Obama Administration backs trade secrets bill

The Obama Administration has thrown its weight behind a US bill intended to improve the protection of trade secrets.

In a statement yesterday, April 5, the administration said the Defend Trade Secrets Act (DTSA) would provide businesses with a “uniform, reliable and predictable way” to protect their trade secrets anywhere in the country.

The bill was passed in the Senate by 87 votes to 0 yesterday.

Under the DTSA, IP owners will be able to secure federal relief for the misappropriation of their trade secrets, as opposed to going through individual state courts.

Also, under “extraordinary circumstances”, a judge may order the seizure of another party’s property in order to “prevent the propagation or dissemination of the trade secret that is the subject of the action”.

The administration said: “Effective protection of trade secrets promotes innovation that is the engine of the nation’s economy and minimises threats to American businesses, the US economy, and national security interests.

“As such, the administration strongly supports the DTSA and looks forward to working with Congress on this important piece of legislation as it moves through the legislative process,” it added.

The bill was passed by the Senate Judiciary Committee in January this year and will now head to the House of Representatives.

Robert Milligan, partner at law firm Seyfarth Shaw, described the creation of a federal cause of action for trade secret misappropriation as a game changer that will allow businesses to protect their valuable information on a nationwide basis.

“It will allow for more effective remedies to protect trade secrets and more efficient discovery than state court actions. Trade secrets will now join patents, trademarks and copyright as valuable intellectual property assets protected by our federal laws,” Milligan added.