On September 25, California Governor Jerry Brown signed into law Senate Bill 1241. SB 1241, effective January 1, 2017, adds Section 925 to the Labor Code to restrain the ability of employers to require employees to litigate or arbitrate employment disputes (1) outside of California or (2) under the laws of another state. The only exception is where the … Continue Reading
Seyfarth Offers 2016-2017 Edition of 50 State Desktop Reference: What Employers Need To Know About Non-Compete and Trade Secrets Law
With the passage of the Defend Trade Secrets Act (DTSA) in May 2016, there is now a federal cause of action for trade secrets misappropriation. In addition, some states have passed legislation this year further narrowing the use of non-compete … Continue Reading
We’ve written a lot this summer about the Massachusetts legislature’s latest failed attempt at non-compete reform. Two other states in New England, however, are able to claim accomplishments in that regard. Specifically, Connecticut and Rhode Island each enacted statutes this summer imposing significant restrictions on the use of non-compete provisions in any agreement that establishes employment or any other form … Continue Reading
In what has become a highly anticipated annual game of “Will They/Won’t They,” the Massachusetts legislature again failed to pass comprehensive noncompete reform legislation this year, despite much fanfare and high hopes from certain quarters. This should come as no surprise to our loyal readers, who have seen this happen virtually every year over the past decade, but it … Continue Reading
According to The Boston Globe, Massachusetts Governor Charlie Baker has publicly voiced his support for some restrictions on noncompete agreements, but he does not want to abolish them entirely. Specifically, Governor Baker supports the bill passed by the Massachusetts House of Representatives (discussed previously here), but not the far more restrictive bill passed by the Massachusetts Senate (discussed … Continue Reading
As we last reported, just a few weeks ago, the Massachusetts House of Representatives unanimously approved a non-compete bill that revised the original draft bill and addressed some of the business community’s concerns (such as the mandatory garden leave provision, prohibition on judicial reform of overbroad agreements, etc.). However, the Senate yesterday introduced a version that would dramatically curtail … Continue Reading
As we previously reported, Massachusetts is making yet another go at non-compete reform, as the Joint Committee on Labor & Workforce Development introduced a compromise bill at the end of May that has many in the Commonwealth talking. As we noted, there were several provisions that gave some commentators pause, including most notably a garden leave provision that would … Continue Reading
In Seyfarth’s sixth installment, attorneys Robert Milligan, Daniel Hart and Amy Abeloff, described the key features of the Defend Trade Secrets Act (“DTSA”) and compared its key provisions to the state Uniform Trade … Continue Reading
The Massachusetts legislature is back at it again — as the Boston Globe reports, the Joint Committee on Labor & Workforce Development has sponsored a compromise bill with the goal of limiting non-competes in the Commonwealth.
On May 11, 2016, President Obama signed the Defend Trade Secrets Act (“DTSA”), which Congress passed on April 27, 2016. With President Obama’s signature, the DTSA has now become the law of the land, and a federal civil remedy for trade secrets misappropriation now exists.
What does the passage of the DTSA mean for your company?
On Monday, May 16 … Continue Reading
Seyfarth Synopsis: A new federal civil cause of action is now available to trade secrets owners seeking to pursue claims of trade secret misappropriation under the Defend Trade Secrets Act (“DTSA”). To take full advantage of the remedies provided under the DTSA, companies have an immediate obligation to provide certain disclosures in all non-disclosure agreements with employees, contractors, and consultants … Continue Reading
Today, President Obama will sign into law the Defend Trade Secrets Act (“DTSA”) in a public “pool spray” Oval Office ceremony. The final gathering is set to occur at 3:20 PM Eastern in the Brady Press Briefing Room. The President will sign the DTSA at 3:35 PM Eastern. Stay tuned for further coverage.… Continue Reading
On May 5, 2016, the White House issued a report largely piggybacking on a recent U.S. Treasury Department study, on which we previously posted, with a primary focus on the purported misuse and negative impacts of non-compete agreements. The White House report reiterated much of what the Treasury Department covered its March 31, 2016 study, and focused on … Continue Reading
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
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
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
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
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
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
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
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.
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
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
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