New Trade Secret Protection Weapon

Congress unanimously passed the Defend Trade Secrets Act, reflecting bipartisan concern over rising cyber threats and economic espionage. The Act creates a new federal private right of action for trade secret misappropriation, giving businesses access to federal courts and enhanced remedies to protect confidential information.

Shhhhhhh!! It’s a Trade Secret!

In a cautionary decision from the Delaware Court of Chancery, the court held that “merely password protecting” information does not, by itself, constitute reasonable efforts to maintain confidentiality. In Wayman Fire Protection, Inc. v. Premium Fire & Security, LLC, the court found that relying solely on standard login protections was insufficient to qualify sales data as a trade secret—highlighting the need for companies to take affirmative steps beyond passwords to clearly communicate and safeguard the confidential nature of their information.