Trade Secrets: New Filings Increase

Monday, April 20, 2020

James Gale was quoted in Law 360 discussing the rise of trade secret cases in federal court since 2016. The data show that about two-thirds of the new cases filed between 2017 and 2019 included claims under the DTSA, which gave litigants a right to file trade secret claims in federal court. Before the DTSA's May 2016 effective date, they could get into federal court if they filed state trade secrets claims alongside other federal claims, or if the dispute invoked "diversity" jurisdiction because the parties span multiple states and the dispute involves enough money. “What you have are a lot of cases that were filed in the state courts that are now being filed in federal court under the DTSA, whereas before they were just in state court under the [Uniform Trade Secrets Act],” said James.

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