Legislation Backed by Collins, King to Protect Trade Secrets Passes Senate
WASHINGTON, D.C. – With the support of U.S. Senators Susan Collins (R-Maine) and Angus King (I-Maine), the Senate today overwhelmingly passed The Defend Trade Secrets Act, bipartisan legislation aimed at helping combat the loss of hundreds of billions of dollars each year in the United States to the theft of corporate trade secrets. The legislation, which is cosponsored by both Senators Collins and King, would empower companies to protect their trade secrets in federal court by creating a federal private right-of-action.
“Innovation is key for Maine businesses as they work to stay ahead of the competition in today’s globalized economy. And when they develop a new idea or technology, their success can hinge on protecting that information,” said Senators Collins and King in a joint statement. “But too often, the very same tools that help connect us in the digital age put those trade secrets at risk from foreign competitors or governments looking to obtain an unfair advantage. By strengthening our trade secret laws, the legislation passed today will help American companies safeguard their hard-earned intellectual property and support their efforts to innovate, grow, and create jobs here at home.”
In today’s electronic age, trade secrets can be stolen with a few keystrokes, and increasingly, they are stolen at the direction of a foreign government or for the benefit of a foreign competitor. These losses put U.S. jobs at risk and threaten incentives for continued investment in research and development.
Current federal criminal law is insufficient. Although the Economic Espionage Act of 1996 made trade secret theft a crime, the Department of Justice lacks the resources to prosecute many such cases. State-level civil trade secret laws alone have not been sufficient to stop interstate theft. Federal courts are better suited to work across state and national boundaries to facilitate discovery, serve defendants or witnesses, or prevent a party from leaving the country. Laws also vary state-to-state, making it difficult for U.S. companies to craft consistent policies.
The Defend Trade Secrets Act would:
· Harmonize U.S. law by building on the Economic Espionage Act to create a uniform standard for trade secret misappropriation. Companies will be able to craft one set of nondisclosure policies secure in the knowledge that federal law will protect their trade secrets.
· Provide for injunctions and damages, to preserve evidence, prevent disclosure, and account for the economic harm to American companies whose trade secrets are stolen without preventing employee mobility.
· Be consistent with the remedies provided for other forms of intellectual property, such as patents, trademarks and copyrights, which are all covered by federal civil law.
The bill is supported by the Association of Global Automakers, Inc., Biotechnology Industry Organization (BIO), The Boeing Company, Boston Scientific, BSA | The Software Alliance (BSA), Caterpillar Inc., Corning Incorporated, Eli Lilly and Company, General Electric, Honda, IBM, Illinois Tool Works Inc., Intel, International Fragrance Association, North America, Johnson & Johnson, Medtronic, Micron, National Alliance for Jobs and Innovation (NAJI), National Association of Manufacturers (NAM), NIKE, The Procter & Gamble Company, Siemens Corporation, Software & Information Industry Association (SIIA), U.S. Chamber of Commerce, United Technologies Corporation and 3M.
