Trade Secret Forum Shopping: DTSA Vs. Texas UTSA

Law360, New York ( July 20, 2016, 12:05 PM EDT) -- On May 11, 2016, businesses became armed with a federal cause of action for trade secret misappropriation. Under the Defend Trade Secrets Act of 2016, any trade secret owner may seek civil redress for misappropriation of trade secrets in federal court as long as the trade secret is related to a product or service used in or intended for use in interstate or foreign commerce. Given most trade secrets meet this criteria, trade secret cases will ordinarily be DTSA-eligible. But because the DTSA does not preempt state trade secret statutes, plaintiffs may continue pursuing trade secret claims in state court under the Texas Uniform Trade Secrets Act. Although the DTSA and the TUTSA are modeled after the Uniform Trade Secrets Act, there are several key differences between the two that should be taken into consideration when deciding whether to bring a state or federal claim, or both....

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