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Category Archives: Legislation

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U.S. Treasury Department Suggests That Non-Compete Reform is Necessary

Posted in Legislation, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

The U.S. Department of Treasury recently released a study on the effect of non-compete agreements, taking a hard line with respect to their social and economic benefits and purported harms.  Specifically, while the authors of the study acknowledge that in some cases non-compete agreements can promote innovation, they ultimately conclude that the potential harm of misuse by employers outweighs those … Continue Reading

What Does the Passage of the Defend Trade Secrets Act Mean for Your Business?

Posted in Legislation, Trade Secrets

Congress passed federal trade secrets legislation today. On April 4, 2016, the Senate passed S. 1890, the Defend Trade Secrets Act of 2016 (“DTSA”). Soon after, on April 20, 2016, the House Committee approved S. 1890 by voice vote. Today, the House passed the DTSA. President Obama has voiced his support for the DTSA, which indicates that he will … Continue Reading

House Vote Live Tweet Update

Posted in Legislation, Trade Secrets

The House is set to vote on the Defend Trade Secrets Act of 2016 (“DTSA”) in a matter of hours. Per the House schedule today, the House will meet at 10:00 a.m. Eastern for morning hour and 12:00 p.m. Eastern for legislative business. First votes are expected around 2:30-3:30 p.m. Eastern and last votes expected are expected around 4:45-5:45 p.m. … Continue Reading

Live Tweet of House Vote on the Defend Trade Secrets Act Tomorrow

Posted in Legislation, Trade Secrets

On April 4, 2016, the Senate Judiciary Committee passed S. 1890, the Defend Trade Secrets Act of 2016 (“DTSA”).  On April 20, 2016, the House Judiciary Committee approved the Senate’s amended version of the bill, which will now be voted on the House floor tomorrow, April 27. The President has indicated that he will sign the DTSA.

We will be … Continue Reading

House Judiciary Committee Passes Senate’s Version of the Defend Trade Secrets Act

Posted in Legislation, Trade Secrets

On April 4, 2016, the Senate Judiciary Committee passed S. 1890, the Defend Trade Secrets Act of 2016 (“DTSA”).  Soon after, House Judiciary Committee Chairman Bob Goodlatte (R-VA) released a statement in which he applauded the Senate’s passage of the bill, noting that “trade secrets are an increasingly important form of intellectual property that have become more vulnerable to theft … Continue Reading

Breaking News: European Parliament Approves Trade Secrets Directive

Posted in International, Legislation, Trade Secrets

Earlier today (by a vote of 503 to 131 with 18 abstentions), the European Parliament approved the text of a proposed Directive for the protection of trade secrets in the European Union.  Once approved by the European Council (which is typically a formality), the Directive will be binding on all EU member states and will require member states to … Continue Reading

European Parliament Debates Proposed Trade Secrets Directive

Posted in International, Legislation, Trade Secrets

As we have previously reported in this blog, this week marks a milestone in ongoing attempts in the European Union to overhaul the existing regulatory framework for the protection of trade secrets.  Earlier today, members of the European Parliament debated the compromise text of the proposed Directive to protect trade secrets.  A full recording of the debate can be found … Continue Reading

Hidden Details: Thoughts on Trade Secrets From the UK

Posted in Legislation, Trade Secrets

As a special feature of our blog—special guest postings by experts, clients, and other professionals—please enjoy this blog entry from Jeremy Morton, an English solicitor who advises in the areas of intellectual property and data protection law. 

As reported recently by Seyfarth Shaw’s lawyers in this very blog, on 13 April the European Parliament will vote on the EU Commission’s … Continue Reading

U.S. Senate Passes Bill Creating A Civil Cause of Action in Federal Court for Trade Secret Misappropriation

Posted in Legislation, Trade Secrets

The U.S. Senate passed on a unanimous 87-0 vote the Defend Trade Secrets Act of 2016 late Monday.

The bill will create a civil cause of action in federal court for trade secret misappropriation and provide remedies that are not available in state court trade secret actions.

Like patents, trademarks, and copyrights, trade secret owners may seek redress for intellectual … Continue Reading

New Utah Law Limits Restrictive Covenants to a One-Year Period

Posted in Legislation, Restrictive Covenants

On March 9, 2016, Utah enacted the Post-Employment Restrictions Amendments, which limits restrictive covenants to a one-year time period from termination. Any restrictive covenant that is entered into on or after May 10, 2016, for more than one year will be void. Notably, the new law does not provide for a court to blue pencil an agreement, rather the agreement … Continue Reading

Senate Judiciary Committee Issues Report in Support of Defend Trade Secrets Act

Posted in Legislation, Trade Secrets

The Senate Judiciary Committee recently released Senate Report 114-220 regarding the Defend Trade Secrets Act of 2016 (“DTSA”). A background on and recent developments of the DTSA are discussed more fully on our blog.

The Judiciary’s most recent report, authored by Senator Chuck Grassley (R-IA), recommended that the recently amended version of S. 1890 pass.

The Report was separated into … Continue Reading

Senate Judiciary Committee Votes in Favor of Passage of an Amended Defend Trade Secrets Act

Posted in Legislation, Trade Secrets

Earlier today, the Senate Judiciary Committee held a voice vote in favor of the passage of the now amended Defend Trade Secrets Act of 2016 (“DTSA”). At this point, the Committee has not yet revealed when the current version of the DTSA will make it to a floor vote, nor has it been announced when and if the House will … Continue Reading

EU Publishes Text of Compromise Trade Secrets Directive for Approval by European Parliament

Posted in International, Legislation, Trade Secrets

As we reported last month in this blog, in December the European Council and representatives of the European Parliament reached a “provisional agreement” on the European Commission’s proposed Directive to protect trade secrets.  With this provisional agreement, the Council and representatives of the European Parliament agreed on compromise language to be submitted to the Parliament for approval, thus clearing … Continue Reading

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2015

Posted in Computer Fraud and Abuse Act, Legislation, Non-Compete Enforceability, Trade Secrets

Continuing our tradition of presenting annually our thoughts concerning the top 10 developments/headlines this past year in trade secret, computer fraud, and non-compete law, here—in no particular order—is our listing for 2015 and a few predictions for 2016.  Please join us for our first webinar of the New Year on January 29, 2016 discussing these developments/headlines.

1) Enactment of federal … Continue Reading

Best Practices Shared in Seyfarth Shaw’s 2015 Trade Secrets Webinar Series Year in Review

Posted in International, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Social Media, Trade Secrets

Throughout 2015, Seyfarth Shaw’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever-changing area of law. The series consisted of nine webinars:

2014 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete and Computer… Continue Reading

Update on the Senate Judiciary Committee’s Hearing on the Protection of Trade Secrets

Posted in Legislation, Trade Secrets

Earlier today, the Senate Judiciary Committee held a hearing regarding the protection of trade secrets through the creation of a federal civil cause of action, which would allow trade secret victims to sue for trade secret misappropriation in federal court.

Senator Chuck Grassley opened the hearing, outlining the importance of protecting the “lesser known but increasingly important form of intellectual … Continue Reading

U.S. Senate To Hold Hearing On Impact of Trade Secret Theft

Posted in Legislation, Trade Secrets

Tomorrow at 10:00 a.m. EST, the United States Senate Judiciary Committee will hold a hearing concerning trade secret theft entitled “Protecting Trade Secrets: The Impact of Trade Secret Theft on American Competitiveness and Potential Solutions to Remedy This Harm.”

The hearing will feature some of the key supporters of the bill known as the Defend Trade Secrets Act (DTSA).  The … Continue Reading

Update on Trans Pacific Partnership’s Potential Impact on Trade Secret Law

Posted in International, Legislation, Trade Secrets

As the 2016 presidential race moves into the debate phase, one issue sure to get more and more attention is the proposed Trans Pacific Partnership (“TPP”).  In simplest terms, the TPP is a proposed trade agreement between twelve Pacific Rim countries, including the United States, concerning a wide variety of matters of economic policy.  Together, the countries account for 40 … Continue Reading

2015-2016 Edition of the Social Media Privacy Legislation Desktop Reference Now Available

Posted in Legislation, Privacy, Social Media, Trade Secrets

Social Media Privacy Legislation Desktop Reference What Employers Need to Know

There is no denying that social media has transformed the way that companies conduct business. In light of the rapid evolution of social media, companies today face significant legal challenges on a variety of issues ranging from employee privacy and protected activity to data practices, identity theft, cybersecurity, … Continue Reading

Latest Update on Federal Trade Secrets Legislation

Posted in Legislation, Trade Secrets

With increased activity regarding proposed federal trade secrets legislation expected next month and for the remainder of the fall Congressional session, Seyfarth Shaw’s dedicated Trade Secrets/Non-Compete group has created a resource which summarizes the proposed legislation, outlines the arguments in favor of and against the legislation, and provides additional resources for our readers’ convenience. This page will be continuously updated … Continue Reading

U.S. Congress To Again Consider Private Right of Action for Trade Secret Misappropriation

Posted in Legislation, Trade Secrets

On July 29, 2015, with bipartisan support, congressional leaders in both the House and Senate, including Senator Orrin Hatch (R-UT) and Representative Doug Collins (R-GA), introduced a bill to create a federal private right of action for the misappropriation of trade secrets.  The proposed legislation, titled the “Defend Trade Secrets Act of 2015” (“DTSA”), follows a failed attempt … Continue Reading

Alabama Revises Non-Compete Statute In Effort to Provide Additional Clarity

Posted in Legislation, Non-Compete Enforceability

On June 11, 2015, Alabama’s Governor signed into law legislation that revises the state’s non-compete statute, which is found in Section 8-1-1 of the Code of Alabama.  The effective date for these changes is January 1, 2016.  As summarized below, these revisions represent the Alabama legislature’s attempt to “clarity” portions of the non-compete statute by codifying several recent judicial decisions … Continue Reading

Hawaii Bans Non-Compete and Non-Solicit Agreements with Technology Workers

Posted in Legislation, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

Hawaii joined the small list of states that prohibit certain non-compete agreements with employees.

On June 26, 2015, Hawaii’s governor David Ige signed Act 158 which voids any “noncompete clause or a nonsolicit clause in any employment contract relating to an employee of a technology business.”

The Act defines “technology business” as one that “derives the majority of its gross … Continue Reading