LEGISLATIVE UPDATE: Senator Proposes New Bill To Create Civil Cause Of Action For Foreign Theft Of Trade Secrets

Just before the Thanksgiving holiday last week, Senator Jeff Flake (R-Ariz.) introduced the Future of American Innovation and Research Act, a new trade secrets bill that would allow American trade secrets owners to sue entities who misappropriate trade secrets outside the United States, or who misappropriate trade secrets on behalf of foreign entities. The bill tracks the Uniform Trade Secret Act's definitions of "trade secret" and "misappropriation," and includes standard remedies of damages and injunctive relief. One interesting addition is that it would also enable courts to seize property involved in the commission of the theft. You can read Flake's press release about his bill here.

This bill is just one more in a laundry list of pending bills related to trade secrets. We've been tracking these proposed laws throughout the year and have updated our primer to include Flake's new bill. We've also updated the chart to include bill numbers and links to up-to-date status information via www.govtrack.us:

Bill Sponsor What's It About? Status Future of American Innovation and Research Act

(S. 1770)

Sen. Jeffry L. Flake (R-Ariz.) First introduced on November 22, 2013, the act would allow trade secret owners to bring a civil action against a person who misappropriates a trade secret if that person is acting either outside of the United States or acting on behalf of a foreign actor. The act would bring foreign actors within the jurisdiction of U.S. federal courts so long as the actors engaged in conduct that either takes place within the United States, or "causes or is reasonably anticipated to cause an injury" within the United States or to an American business or citizen. Available remedies include damages, restitution, injunctive relief, punitive damages, and attorneys' fees. The act would also permit courts to issue ex parte seizure orders, allowing seizure of items (such as computers) used in connection with trade secrets theft, subject to certain procedural requirements. Referred to the Senate Judiciary Committee Private Right of Action Against Theft of Trade Secrets Act of 2013

(H.R. 2466)

Rep. Zoe Lofgren (D-Cal.) Introduced in the House on June 20, 2013, the bill would add a provision to 18 U.S.C. § 1832 that creates a private cause of action for the theft of trade secrets. Under this amendment, reverse engineering is explicitly not actionable. Referred to the House Committee on the Judiciary Aaron's Law Act of 2013

(H.R. 2454)

Rep. Zoe...