A misguided attempt to “defend trade secrets”; Washington Post, 12/2/15

David Post, Washington Post; A misguided attempt to “defend trade secrets” :

"Along with 41 colleagues, I recently joined a letter submitted to the Committee opposing DTSA in which we tried to point out some of the ways in which putting this weapon in the hands of trade secret owners is likely to backfire, becoming a “strategic weapon” that will be used mostly for anti-competitive purposes that have nothing to do with preventing “cyber-espionage.” [A more detailed critique of the ex parte seizure provisions can be found in this article by Eric Goldman, one of the authors of the law professors’ letter]

It is often difficult, when considering intellectual property law, to see the downside of proposals meant to strengthen legal protection (while relatively easy to see the upside). Trade secret law has profound effects on employee mobility; the vast majority of trade secret litigation in this country involves employees moving from one company to another (and allegedly taking their former employer’s trade secrets with them). The DTSA will have little or no effect on Chinese government agents, but it is likely to have a deeper and much more lasting effect on the health of the labor market in this country, and not for the better."

The Defend Trade Secrets Act: IP legislation ready to move forward now; The Hill, 12/2/15

David J. Kappos, The Hill; The Defend Trade Secrets Act: IP legislation ready to move forward now:

"The Defend Trade Secrets Act of 2015 (DTSA), for which identical bills were proposed with bipartisan support in both the House and Senate on July 29, 2015, would significantly improve federal protections to curb trade secret theft and thus secure the value of trade secrets. In our modern knowledge economy where (no surprise) knowledge is a source of immense value, American companies are finding themselves the victims of trade secret theft at an alarming rate. Unscrupulous business practices free-riding off of the investment of innovative competitors is hardly a recent phenomenon. But the impact of mass digitization has enabled theft on an unprecedented scale. A 2013 U.S. Chamber of Commerce study estimated the cost of cybercrime to the United States was upward of $120 billion; a 2014 PricewaterhouseCoopers/CREATe.org report estimated that theft of trade secrecy amounts to 1-3 percent of U.S. GDP."