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And people say Congress and the White House can’t agree on anything. Last week, by a vote of 410-2, the US House of Representatives passed the Defend Trade Secrets Act. The Act will become law. It has already been unanimously approved by the Senate and President Obama has indicated he will sign it.
The new law will do several important things.
- First, it allows the owners of trade secrets to sue in federal courts, thought to be far more suited than state courts to the expedited relief necessary when confidential and proprietary business information has been misappropriated.
- Second, a controversial portion of the Act provides for civil seizure of property “necessary” to prevent the dissemination or propagation of a trade secret – even (in extraordinary circumstances) before a hearing is held or the accused party has a chance to respond.
- Third, the Act permits individuals to make certain disclosures of trade secret information in anti-retaliation lawsuits.
- Fourth, the Act immunizes an individual from criminal or civil liability for disclosing trade secrets to government officials, attorneys, or in litigation, in specific circumstances.
- Finally, the Act requires employers to provide notice of that immunity in “any contract or agreement” with an employee, contractor or consultant that governs the use of trade secret or other confidential information,” or by cross-referencing to a policy document that sets forth the employer’s reporting policy for a suspected violation of law.








