Source: http://danfingerman.com/law/statutes/Fed_DTSA.html
Timestamp: 2019-03-26 13:23:57
Document Index: 406588598

Matched Legal Cases: ['§ 1831', '§ 1839', '§ 2', '§ 4', '§ 5', '§ 6']

Defend Trade Secrets Act (DTSA) / Economic Espionage Act (EEA)
DTSA amended the Economic Espionage Act (EEA): 18 U.S.C. §§ 1831–1839 (Chapter 90)
Enacted when signed by President Obama on May 11, 2016
Uncodified sections of DTSA
Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly —
Organizations. —
Whoever, with intent to convert a trade secret, that is related to a product or service used in or intended for use in interstate or foreign commerce, to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will, injure any owner of that trade secret, knowingly —
Any organization that commits any offense described in subsection (a) shall be fined not more than the greater of $5,000,000 or 3 times the value of the stolen trade secret to the organization, including expenses for research and design and other costs of reproducing the trade secret that the organization has thereby avoided.
This chapter does not prohibit or create a private right of action for —
Immunity From Liability for Confidential Disclosure of a Trade Secret to the Government or in a Court Filing. —
Immunity. —
An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that —
Use of trade secret information in anti-retaliation lawsuit. —
An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual —
Policy document. —
Non-compliance. —
Applicability. —
Employee defined. —
For purposes of this subsection, the term "employee" includes any individual performing work as a contractor or consultant for an employer.
Rule of construction. —
Orders to preserve confidentiality
Rights of Trade Secret Owners. —
Private Civil Actions. —
Civil seizure. —
Application. —
Requirements for issuing order. —
The court may not grant an application under clause (i) unless the court finds that it clearly appears from specific facts that —
the applicant is likely to succeed in showing that —
the person against whom seizure would be ordered —
the person against whom seizure would be ordered has actual possession of —
Elements of order. —
If an order is issued under subparagraph (A), it shall —
provide guidance to the law enforcement officials executing the seizure that clearly delineates the scope of the authority of the officials, including —
Protection from publicity. —
Materials in custody of court. —
Storage medium. —
Protection of confidentiality. —
Appointment of special master. —
Service of order. —
Seizure hearing. —
Burden of proof. —
Dissolution or modification of order. —
Discovery time limits. —
Action for damage caused by wrongful seizure. —
Motion for encryption. —
Remedies. —
In a civil action brought under this subsection with respect to the misappropriation of a trade secret, a court may —
grant an injunction —
to prevent any actual or threatened misappropriation described in paragraph (1) on such terms as the court deems reasonable, provided the order does not —
in lieu of damages measured by any other methods, the damages caused by the misappropriation measured by imposition of liability for a reasonable royalty for the misappropriator's unauthorized disclosure or use of the trade secret;
if a claim of the misappropriation is made in bad faith, which may be established by circumstantial evidence, a motion to terminate an injunction is made or opposed in bad faith, or the trade secret was willfully and maliciously misappropriated, award reasonable attorney's fees to the prevailing party.
Jurisdiction. —
Period of Limitations. —
Applicability to conduct outside the United States
This chapter also applies to conduct occurring outside the United States if —
the term "trade secret" means all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if —
the term "owner", with respect to a trade secret, means the person or entity in whom or in which rightful legal or equitable title to, or license in, the trade secret is reposed;
the term "misappropriation" means —
disclosure or use of a trade secret of another without express or implied consent by a person who —
at the time of disclosure or use, knew or had reason to know that the knowledge of the trade secret was —
before a material change of the position of the person, knew or had reason to know that —
the term "improper means" —
the term "Trademark Act of 1946" means the Act entitled "An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes, approved July 5, 1946 (15 U.S.C. 1051 et seq.) (commonly referred to as the 'Trademark Act of 1946' or the 'Lanham Act')". 1
1 Error in the original: the closing quotation mark in the last sentence of the DTSA (at the end of § 1839(7)) should follow purposes instead of coming at the end of the sentence.
DTSA § 2
Effective Dates and Rules of Construction
Effective Date. — The amendments made by this section shall apply with respect to any misappropriation of a trade secret (as defined in section 1839 of title 18, United States Code, as amended by this section) for which any act occurs on or after the date of the enactment of this Act.
Rule Of Construction. — Nothing in the amendments made by this section shall be construed to modify the rule of construction under section 1838 of title 18, United States Code, or to preempt any other provision of law.
Applicability To Other Laws. — This section and the amendments made by this section shall not be construed to be a law pertaining to intellectual property for purposes of any other Act of Congress. 2
2 See commentary by Eric Goldman: Goldman, Eric, The Defend Trade Secrets Act Isn't an 'Intellectual Property' Law (April 1, 2017). Santa Clara High Tech Law Journal, Vol. 33, pages 541-551, 2017; Santa Clara Univ. Legal Studies Research Paper No. 3-17. Available at SSRN: https://ssrn.com/abstract=2924827 (summarized at New Paper: "The Defend Trade Secrets Act Isn't an 'Intellectual Property' Law" ).
DTSA § 4
Report on Theft of Trade Secrets Occurring Abroad.
Definitions. — In this section:
Director. — The term Director means the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office.
Foreign Instrumentality, Etc. — The terms foreign instrumentality, foreign agent, and trade secret have the meanings given those terms in section 1839 of title 18, United States Code.
State. — The term State includes the District of Columbia and any commonwealth, territory, or possession of the United States.
United States Company. — The term United States company means an organization organized under the laws of the United States or a State or political subdivision thereof.
Reports. — Not later than 1 year after the date of enactment of this Act, and biannually thereafter, the Attorney General, in consultation with the Intellectual Property Enforcement Coordinator, the Director, and the heads of other appropriate agencies, shall submit to the Committees on the Judiciary of the House of Representatives and the Senate, and make publicly available on the Web site of the Department of Justice and disseminate to the public through such other means as the Attorney General may identify, a report on the following:
Recommendations of legislative and executive branch actions that may be undertaken to —
DTSA § 5
chapter 90 of title 18, United States Code (commonly known as the Economic Espionage Act of 1996), applies broadly to protect trade secrets from theft; and
it is important when seizing information to balance the need to prevent or remedy misappropriation with the need to avoid interrupting the —
DTSA § 6
Recommendation of Best Practices for Seizure Practice
In General. — Not later than 2 years after the date of enactment of this Act, the Federal Judicial Center, using existing resources, shall develop recommended best practices for —
Updates — The Federal Judicial Center shall update the recommended best practices developed under subsection (a) from time to time.
Congressional Submissions. — The Federal Judicial Center shall provide a copy of the recommendations developed under subsection (a), and any updates made under subsection (b), to the —