US Senate is composed to pass a bill on Monday, giving the companies better legal protections for their commercial secrets and allowing them for the 1st time to sue in the federal court if they’re stolen.
Defend Trade Secrets Act has noteworthy cross-party backing with 65 cosponsors, led by Sen. Orrin Hatch, who is the Republican of Utah, & Senator Chris Coons – the Delaware Democratic.
The theft of an intellectual property, including the trade secrets, costs the businesses of United States over 300 billion dollars a year, according to a report by ‘ Commission on Theft of American Intellectual Property’ in 2013 that was made up of a dual-party group of the high-ranking former U.S. officials.
For that cause, the bill received backing from a wide range of companies, including Johnson & Johnson and Boeing Co & the trade groups such as the U.S. Chamber of Commerce, Biotechnology Industry Organization, and a software lobby whose members include Microsoft Corp & Apple Inc.
The Trade secrets are the confidential information, which can give a businesses a commercial edge. They can differ extensively depending on industry, including manufacturing processes, computer algorithms, formulas, industrial designs, customer lists and business strategies.
The Companies have become gradually concerned about defending themselves against the threats, including hacking & the rogue employees.
The legislature would give companies the right to sue in the federal court in order to enforce injunctions, recover the damages & prevent further dissemination of the stolen trade secrets.
It’d also put forth a uniform standard for what establishes trade secret theft. Presently, if the companies want to sue, they’re relegated to the state courts, where there’s a patchwork of the state laws.
The Trade secret theft is already a federal crime, however acc. to bill’s sponsors, the U.S. Department of Justice dearth the resources to act against such crimes.
Some critics warned that a broad legislation on the trade secrets could lead to a more frivolous litigation in the federal courts.
A version of bill has been presented in the United States House of Representatives & over 120 sponsors, but House Judiciary Committee hasn’t yet considered it & it wasn’t clear if it would act in the coming months.