The Myth of the Trade Secret Troll: Why We Need a Federal Civil Claim for Trade Secret Misappropriation

Abstract

Trade secret theft is a federal crime, but civil cases must be brought in state court. Because commerce is now global and most assets are information-based, misappropriation is easier, faster and quicker. State court processes are insufficient for interstate or international disputes. The proposed Defend Trade Secrets Act of 2015 would address the problem by adding a civil claim to the Economic Espionage Act. Arguments against it tend to be based on incorrect assumptions or speculation. The legislation provides sufficient safeguards against abuse, and would not inhibit labor mobility or lead to the appearance of "trade secret trolls."