The Flaw In DTSA'S Civil Seizure Provision

Law360, New York ( July 21, 2016, 4:43 PM EDT) -- The enforcement arsenal for trade secrets plaintiffs was recently fortified by the Defend Trade Secrets Act, which took effect May 11, 2016. For the first time, a victim of trade secret theft may petition a federal court, ex parte, for a seizure order permitting law enforcement to take possession of the property containing the trade secrets. This "civil seizure" provision has received a welcome reception by many trade secret law practitioners and large, global corporations. And perhaps rightfully so, given that the DTSA provides trade secret plaintiffs a more uniform avenue to seek redress for their trade secret grievances at the federal level. But this newfound enthusiasm especially for civil seizure must be tempered by the sobering risk of liability for a wrongful or excessive seizure. . . .

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