The Senate unanimously passed legislation Monday that would allow civil action over the theft of trade secrets, a problem that has increased by 60 percent since 2009.
Federal law is currently thin when it comes to trade secret theft. It’s mostly left up to a patchwork of laws in 47 states.
The Senate bill, which passed 87-0, was sponsored by Sens. Orrin Hatch, R-Utah, and Chris Coons., D-Conn., and is aimed at streamlining jurisdiction over trade theft so that victims can more easily take action to stop it.
“It will allow victims to quickly move to federal court to stop their trade secrets from being decimated,” said Senate Judiciary Committee Chairman Charles Grassley, R-Iowa.
The Obama administration on Monday signaled its support for the legislation.
“Effective protection of trade secrets promotes innovation that is the engine of the nation’s economy and minimizes threats to American businesses, the U.S. economy, and national security interests,” administration officials said in a statement.
Grassley said trade secret theft has become a significant and growing problem in America and pointed to an example in his own state involving a foreign national stealing proprietary test seeds from the agricultural giant Monsanto. Grassley also said it costs the nation more than two million jobs annually and that the patchwork of state laws are not enough to offer victims of theft a fast court remedy.
The bill would establish a federal civil private right of action for trade secret theft, which will essentially allow victims to sue those who steal trade secrets.
The legislation also includes protections for whistleblowers who disclose trade secrets to the government, which Grassley said, “allows us to help make sure those who are in the best position to report illegal conduct can come forward.”
