Federal lawmakers last week unveiled their latest effort to give companies a new track to fight trade-secrets theft — the federal courts. Sens. Chris Coons, D-Del., and Orrin Hatch, R-Utah, filed the Defend Trade Secrets Act on April 28. The measure would create the first federal civil cause of action for trade-secrets theft. The bill, which has bipartisan support on the Hill and broad support in the business community, marks a renewed effort to bolster the ability of corporations to protect intellectual property.
The lawmakers contend federal criminal law is insufficient to protect company secrets — the U.S. Department of Justice brought only 25 trade-secrets theft cases last year — and that state court litigation is often slow and cumbersome. Trade-secrets theft accounts for annual losses ranging from an estimated $160 billion to $480 billion in the United States, according to the lawmakers.
