Second Time A Charm?

By Karina Sterman

Senate Bill 3389 is titled the “Protecting American Trade Secrets & Innovation Act of 2012” and it constitutes a second attempt to pass legislation that would create a new federal private civil cause of action for misappropriation of trade secrets. If the bill passes, victims of trade secret theft that occurs in more than one state would be able to bring a single action under the statute in a federal district court instead of the currently required series of actions under each state’s separate trade secret statute. The new statute provides for damages consisting of both actual loss and unjust enrichment, as well prevailing party attorneys’ fees against someone who has either misappropriated trade secrets maliciously or against someone who has brought a misappropriation of trade secrets lawsuit in bad faith. The full text of the bill can be found here.