Defend Trade Secrets Act: Trends and Updates

AUGUST 7, 2017 — The Defend Trade Secrets Act (“DTSA”), which created a federal private right of action for trade secret misappropriation, became law on May 11, 2016.  Since that time, DTSA claims have increased, but still trail the number of state law trade secret claims by a significant margin.  This alert provides an update to our prior alert of January 2017 and focuses on some recent developments in case law since the beginning of 2017.

  • In the first year since the DTSA’s enactment, more than 360 complaints with DTSA claims were filed.  At least 343 were filed originally in federal court, 11 in state court but removed to federal court, and 14 stayed in state court.  Approximately 85% of the complaints with a DTSA claim also asserted a state law trade secret claim.
  • Over the same period, more than 515 complaints with only state law trade secret claims were filed—at least 200 in federal court and more than 315 in state court.
  • Nationally, California federal and state courts have seen the most complaints with DTSA claims (over 15% of all complaints with DTSA claims filed have been filed in California).

Since enactment, case law interpreting the DTSA has evolved, and some trends have emerged. 

Read more..