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Trade Secret Misappropriation Litigation Under the Defend Trade Secrets Act: A Practical Guide

Before 2016, a company whose engineer walked out with the source code had to sue in state court under a patchwork of state trade secret statutes, or find a federal hook. The Defend Trade Secrets Act created a federal civil cause of action for misappropriation of trade secrets related to a product or service used in interstate commerce, and with it a federal forum, nationwide service, and an extraordinary ex parte civil seizure remedy. This guide covers the entire life cycle of a DTSA case. It explains what qualifies as a trade secret and why reasonable measures to maintain secrecy is where most cases are actually decided, how misappropriation and improper means are defined, and how the DTSA relates to state law under the Uniform Trade Secrets Act, which it does not preempt. It works through the emergency phase, including temporary restraining orders, expedited discovery, forensic imaging protocols, and the rarely used and frequently misunderstood seizure provision of section 1836(b)(2). It covers the trade secret identification fight, the inevitable disclosure doctrine and its state-by-state divergence, remedies including exemplary damages and attorney fees, the whistleblower immunity of section 1833(b) and the notice requirement that conditions enhanced remedies, and the criminal overlay of the Economic Espionage Act. It closes with strategy for both sides, a worked example, an FAQ, and related reading.

Casey Scott McKayApril 9, 202528 min read