DTSA (DEFEND TRADE SECRETS ACT) CLAIMS INCREASE DRAMATICALLY IN 2017 AND 2018

FROM DTSALaw®:  As we have previously predicted on these pages (and at www.dtsalaw.com ), the number of DTSA lawsuits has risen dramatically in 2017 and the first two quarters of 2018. Lex Machina and IPLaw 360 report that DTSA lawsuits increased from roughly 900 suits to over 1100 in 2018. In the first two quarters of 2018, the number of filings already is 581. The DTSA is still working its way into the legal community’s knowledge base and many practitioners may still be unaware of the most important benefit – of automatic Federal Court jurisdiction for trade secret cases under the 2016 DTSA that involve interstate commerce. The DTSA was signed into legislation as an amendment to the Economic Espionage Act (EEA) and with EEA is a powerful tool in the arsenal of litigation strategies in both the employment and non-employment arenas. Many DTSA claims are part of claims brought to enforce employment restrictive covenants, which restrictive covenant claims themselves are becoming disfavored by the states and their courts. As “non-compete” claims find less favor with the courts, lawyers should look carefully at the DTSA (and EEA) for civil claims that might apply. IPLaw 360 reports as well that only 19 cases filed to date have reached a conclusion on the merits of trade secret misappropriation. Results were essentially evenly split between plaintiffs and defendants. Houston Harbaugh, P.C. (www.hh-law.com) has an aggressive employment and trade secret practice and Pittsburgh is seeing a number of new cases filed in its Western District Pennsylvania Federal Court. DTSALaw® is a registered trademark of Houston Harbaugh, P.C.

Posted by Henry M. Sneath, Esq.                                             Shareholder and Director;                                                                                      Co-Chair of the Litigation Department;                                                    Chair of the IP Department;                                                                         Houston Harbaugh, P.C.  (www.hh-law.com)                                                    Pittsburgh, Pa.                                                                                                              Please contact Mr. Sneath at 412-288-4013 or sneathhm@hh-law.com

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