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The Intellectual Property StrategistFeaturesCriminal LawIntellectual PropertyLitigationTrade Secrets

Criminal Considerations In Trade Secrets Disputes

By Jeffrey A. Pade and Anand B. Patel
October 01, 2022

To combat the growing concerns surrounding trade secret theft, Congress passed the Economic Espionage Act of 1996 (EEA), Pub. L. 104–294, 110 Stat. 3488, codified as amended at 18 U.S.C. §§1831-1839, creating for the first time a cohesive federal framework for criminally prosecuting trade secret theft. The EEA, however, did not provide private citizens the right to initiate civil proceedings against trade secret misappropriation. See, 110 Stat. 3490 (providing the Attorney General may bring civil actions to enjoin EEA violations).

In 2016, with the Defend Trade Secrets Act (DTSA), Congress amended the EEA to include (among other things) civil liability for misappropriation in 18 U.S.C. §1836. Prior to the availability of a federal civil remedy under the DTSA, victims of trade secret theft typically sought civil relief through a mix of state common law and statutory claims.

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