What Are the Key Provisions Entrepreneurs Should Know?
The DTSA includes several key provisions that entrepreneurs should be aware of:
1. Whistleblower Immunity The DTSA contains a whistleblower immunity provision that protects individuals from liability if they disclose a trade secret in confidence to a government official or attorney for the purpose of reporting a violation of law. Entrepreneurs should ensure their employment agreements and policies include notice of this immunity.
2. Seizure Orders The DTSA allows courts to issue seizure orders to prevent the dissemination of a trade secret. This can be a powerful tool for entrepreneurs to quickly act against misappropriation. However, the requirements are stringent to prevent abuse, and misuse can lead to significant penalties.
3. Statute of Limitations The DTSA has a three-year statute of limitations, meaning that entrepreneurs must act promptly when they discover misappropriation. Timely action is crucial to leverage the protections offered by the DTSA effectively.