WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Orrin Hatch (R-Utah), both members of the Senate Judiciary Committee, issued the following statement after the committee passed the Defend Trade Secrets Act by a voice vote. The bill has 27 bipartisan cosponsors.

“I am very pleased this committee was able to come together in a strong, bipartisan way to help American companies defend the trade secrets that drive their growth and innovation,” said Senator Chris Coons. “It is clear that Democrats and Republicans in both chambers recognize that American businesses continue losing significant revenue and American jobs to trade secret theft, a national problem the Defend Trade Secrets Act intends to fix. I strongly urge Senate Majority Leader Mitch McConnell to bring this bipartisan bill to the floor immediately so we can move forward in protecting the intellectual property of American businesses. We need this bill now more than ever to keep America competitive in the global economy.” 

“The Judiciary Committee’s overwhelming vote in support of the Defend Trade Secrets Act demonstrates the importance and timeliness of this legislation,” said Senator Orrin Hatch. “I hope the Senate will follow suit and act promptly to safeguard American ingenuity and give companies the legal protections they deserve. Not only has our bill attracted overwhelming bipartisan support in both chambers of Congress; it has also garnered endorsements from a wide-array of industry stakeholders who know firsthand the economic losses caused by trade secret theft.  Both Republicans and Democrats agree that this bill is critical for American property rights and innovation.” 

Senators Coons and Hatch also published an op-ed on the Defend Trade Secrets Act in the Hill. 

Background

In today’s electronic age, trade secrets can be stolen with a few keystrokes, and increasingly, they are stolen at the direction of a foreign government or for the benefit of a foreign competitor. These losses put U.S. jobs at risk and threaten incentives for continued investment in research and development.

Current federal criminal law is insufficient. Although the Economic Espionage Act of 1996 made trade secret theft a crime, the Department of Justice lacks the resources to prosecute many such cases. State-level civil trade secret laws alone have not been sufficient to stop interstate theft. Federal courts are better suited to working across state and national boundaries to facilitate discovery, serve defendants or witnesses, or prevent a party from leaving the country. Laws also vary state-to-state, making it difficult for U.S. companies to craft consistent policies.

The Defend Trade Secrets Act would:

  • Harmonize U.S. law by building on the Economic Espionage Act to create a uniform standard for trade secret misappropriation. Companies will be able to craft one set of nondisclosure policies secure in the knowledge that federal law will protect their trade secrets.
  • Provide for injunctions and damages, to preserve evidence, prevent disclosure, and account for the economic harm to American companies whose trade secrets are stolen without preventing employee mobility.
  • Be consistent with the remedies provided for other forms of intellectual property, such as patents, trademarks and copyrights, which are all covered by federal civil law.

The bill is supported by the Association of Global Automakers, Inc., Biotechnology Industry Organization (BIO), The Boeing Company, Boston Scientific, BSA | The Software Alliance (BSA), Caterpillar Inc., Corning Incorporated, Eli Lilly and Company, General Electric, Honda, IBM, Illinois Tool Works Inc., Intel, The Intellectual Property Owners Association (IPO), International Fragrance Association, North America, Johnson & Johnson, Medtronic, Micron, National Alliance for Jobs and Innovation (NAJI), National Association of Manufacturers (NAM), NIKE, The Procter & Gamble Company, Siemens Corporation, Software & Information Industry Association (SIIA), U.S. Chamber of Commerce, and United Technologies Corporation.