Patents and Trademarks: Trade Secrets

• Trade secrets are just what the name says - secrets vital to a company.
• Often too sensitive to patent
• Protected by legal documents such as non-disclosure agreements
• Famous example of a trade secret: recipe for Coke

Laws

Econoimc Espionage Act of 1996 criminalizes trade theft under two circumstances:

• Economic espionage - theft of a trade secret knowingly benefitting a foreign government, instrumentality, or agent.
• Theft of trade secrets - theft of a product or service used in interstate or foreign commerce where the theif knows the loss will damage the owner.
• Prosecuted by the Department of Justice
• Punishable by fines and/or prison

Defend Trade Secrets act of 2016 amends the Economic Espionage Act by adding a civil cause of action

Sanctions

• Courts can order the misappropriation stop
• Courts can order the trade secret be protected from public knowledge
• Misappropriated goods may be seized
• Damages, court costs, and reasonable attorneys' fees may be awarded