1. Defend Trade Secrets Act of 2016

2. DTSA of 2016
Amends federal law to create a cause of action for trade secret misappropriation.
Does not preempt state laws in this field.
Creates a three-year statute of limitations for bringing federal trade secret misappropriation claims.

3. “misappropriation” Defined
Acquisition of a trade secret of another who knows or has reason to know that the trade secret was acquired by improper means or disclosure of a trade secret of another without express or implied consent by a person who: (i) at the time of disclosure or use, knew or had reason to know that the knowledge of the trade secret was:

4. derived from or through a person who owed a duty to maintain the secrecy of the trade secret or limit the use of the trade secret; or
acquired under circumstances giving rise to a duty to maintain the secrecy of the trade secret or limit the use of the trade secret; or
derived from or through a person who owed a duty to the person seeking relief to maintain the secret of the trade secret or limit the use of the trade secret; or

5. (ii) before a material change of the position of the person, knew or had reason to know that (i) the trade secret was a trade secret; and (ii) knowledge of the trade secret had been acquired by accident or mistake.

6. “improper means” Defined
includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means; and
does not include reverse engineering, independent derivation or any other lawful means of the acquisition.

7. Remedies
Civil seizure
Injunction to prevent any actual or threatened misappropriation
Damages for actual loss, damages or any unjust enrichment, or reasonable royalty
Damages are doubled if the trade secret is willfully and maliciously misappropriated

8. Attorney Fees
Available to the prevailing party if the trade secret was willfully and maliciously misappropriated
Available if the claim of misappropriate is made in bad faith, which may be established by circumstantial evidence
Available if the motion to terminate an inunction is made or opposed in bad faith.