The Federal Defend Trade Secrets Act (“DTSA”) Compliance, Training or Litigation

How does the DTSA impact businesses?

Businesses in Florida must navigate the complexities of DTSA to safeguard their proprietary information and intellectual property. DTSA compliance involves implementing measures to protect trade secrets from unauthorized disclosure or misappropriation. This includes developing robust confidentiality agreements, restricting access to sensitive information, and implementing cybersecurity protocols to safeguard digital assets.

Training employees on DTSA compliance is essential to raise awareness of the importance of protecting trade secrets and intellectual property. Training programs should educate employees on identifying confidential information, recognizing potential threats, and adhering to company policies and procedures to prevent trade secret misappropriation.

Failure to comply with DTSA regulations can expose businesses to legal risks, including costly litigation and reputational damage. Accordingly, companies must be prepared to defend their trade secrets and intellectual property rights under DTSA if they need to defend or prosecute in court.

Do you need help with DTSA compliance, training, or litigation? Schedule your consultation today with a top employment law attorney.

Which laws and regulations relate to DTSA compliance, training, or litigation in Florida?

In Florida, several laws and regulations intersect with DTSA compliance, training, or litigation, including:

• Florida Uniform Trade Secrets Act (FUTSA): The FUTSA aligns with DTSA principles and provides additional protections for trade secrets at the state level. It offers remedies for misappropriation and defines the scope of protected information.
• Florida Non-Compete Law: Florida Statute § 542.335 governs non-compete agreements, which often overlap with trade secret protection strategies. Employers must comply with DTSA and Florida non-compete laws to safeguard proprietary information effectively.

What are common issues regarding DTSA compliance and training that lead to litigation?

The following issues are among the most common in actions regarding DTSA non-compliance:

• Insufficient Documentation: Failure to adequately document trade secrets or implement proper confidentiality agreements can weaken legal claims under DTSA, leading to disputes over ownership and protection of proprietary information.
• Lack of Employee Awareness: Inadequate employee training on DTSA compliance can result in unintentional disclosure or misuse of trade secrets, increasing the risk of litigation due to internal breaches.
• Inadequate Security Measures: Poor cybersecurity practices and lax physical security protocols may expose trade secrets to unauthorized access or theft, leaving businesses vulnerable to DTSA litigation.
• Misappropriation by Former Employees: Departing employees may unlawfully take trade secrets to competitors or use them for personal gain, triggering DTSA litigation over misappropriation and breach of confidentiality obligations.

We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What steps should an employer take to minimize the risk of litigation over DTSA compliance and training?

• Develop Robust Trade Secret Protection Policies: Establish comprehensive policies and procedures for identifying, classifying, and safeguarding trade secrets, including encryption, access controls, and monitoring mechanisms.
• Conduct Regular Employee Training: Provide ongoing training sessions to educate employees on the importance of trade secret protection, confidentiality obligations, and the legal implications of DTSA violations.
• Implement Non-Disclosure Agreements (NDAs): Require employees, contractors, and business partners to sign NDAs to protect sensitive information and establish clear expectations regarding confidentiality and non-disclosure.
• Enhance Cybersecurity Measures: Invest in robust cybersecurity technologies and protocols to secure digital assets, prevent unauthorized access, and detect potential data breaches or intrusions.
• Enforce Employment Agreements: Enforce non-compete, non-solicitation, and confidentiality agreements to deter employees from engaging in activities that could lead to trade secret misappropriation or DTSA litigation.
• Regularly Monitor and Update Policies: Continuously monitor and update trade secret protection policies and procedures to adapt to evolving threats, technological advancements, and regulatory changes.

Frequently Asked Questions

Can I disclose trade secrets if they become obsolete?

No, trade secrets maintain their protected status as long as they retain economic value through secrecy. Even if information becomes outdated, disclosing it without authorization can constitute misappropriation under the DTSA.

How does the DTSA differ from state trade secret laws?

While the DTSA provides a federal cause of action for trade secret misappropriation, state laws may offer additional or alternative remedies. Understanding federal and state laws is essential for comprehensive trade secret protection strategies.

What remedies are available under the DTSA for trade secret misappropriation?

The DTSA allows plaintiffs to seek injunctive relief, compensatory damages, punitive damages, and attorney’s fees for trade secret misappropriation. Remedies aim to restore the plaintiff’s rights and deter future violations.

Have more questions about a DTSA compliance, training, or litigation-related situation?

Crucially, this overview of DTSA compliance, training, and litigation does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.

Here are some blogs written by JB attorneys that provide more information about employment law:

• Independent Contractor or Employee: Know the Difference
• Rescinding Job Offers in At-Will Employments in Florida
• Tips for Drafting Employee Handbooks in Florida
• Understanding the Process for Employee Sexual Harassment Claims
• Contesting OSHA Violations and OSHA Citations: A Guide To OSHA Employer Rights
• What Do Contractors Need to Know About Employee Duty of Loyalty and Ability to Compete