Source: https://www.wilmerhale.com/insights/client-alerts/2016-05-16-congress-creates-federal-right-of-action-for-trade-secret-misappropriation
Timestamp: 2019-04-19 00:19:52+00:00

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The DTSA includes a whistleblower immunity provision that raises an immediate compliance issue concerning companies' confidentiality agreements. Whistleblowers are granted immunity for disclosure of a trade secret in two circumstances: (i) to a government official “solely for the purpose of reporting or investigating” a suspected legal violation or (ii) in a retaliation suit to their attorney or in a document filed under seal.4 Companies must provide notice of this whistleblower immunity in “any contract or agreement” with an employee (including any individual performing work as a contractor or consultant) “that governs the use of a trade secret or confidential information,” though they may do so by cross-referencing a freestanding policy that addresses the immunity.5 Failure to provide the required notice would deprive an employer of the possibility of getting exemplary damages or attorney's fees in a federal trade secret misappropriation case against an employee.
If you would like assistance with updating your company's confidentiality agreements and/or policies (e.g. non-disclosure agreements, employment or independent contractor agreements, employee handbooks, and/or severance agreements) to reflect this new notice obligation, please contact a member of WilmerHale's Labor and Employment Group.
2 DTSA § 2(a) (amending 18 U.S.C. § 1836(b)(1)) (“An owner of a trade secret that is misappropriated may bring a civil action under this subsection if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.”).
3 Forty-seven states and Washington DC, have adopted all or part of the Uniform Trade Secrets Act (UTSA). With the passage of the DTSA, plaintiffs may pursue claims under both the DTSA and state law, i.e., the DTSA does not preempt state law versions of the UTSA. Id. § 2(f); see also 18 U.S.C. § 1838.
4 DTSA § 7(a) (amending 18 U.S.C. § 1833 (b)).
6 Id. § 2(b); 18 U.S.C. § 1839(3).
7 DTSA § 2(a) (amending 18 U.S.C. § 1836(b)(2)(A)).
8 Id. (amending 18 U.S.C. § 1836(b)(3)(C)) (“[I]f the trade secret is willfully and maliciously misappropriated, [a court may] award exemplary damages in an amount not more than 2 times the amount of the [compensatory] damages awarded . . . .”).
9 Id. (amending 18 U.S.C. § 1836(b)(3)(D)).
10 Id. (amending 18 U.S.C. § 1836(b)(3)(A)(iii)).
11 Id. (amending 18 U.S.C. § 1836(b)(3)(A)).
12 Id. (amending 18 U.S.C. § 1836(b)(3)(A)(i)(II)).

References: § 2
 § 1836
 § 2
 § 1838
 § 7
 § 1833
 § 2
 § 1839
 § 2
 § 1836
 § 1836
 § 1836
 § 1836
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 § 1836