Defend Trade Secrets Act Creates Need to Revise Employee Contracts Governing Use of Trade Secrets and Confidential Information
Fashion companies deal with trade secrets and other confidential information all the time. Whether it is proprietary information regarding customers, pricing, sourcing, product design or manufacturing methods, this valuable intellectual property provides a competitive edge in the market by virtue of the fact that it is not generally known. If you use employment contracts or non-disclosure agreements with your employees restricting their use of the company’s trade secrets or other confidential information (and if you don’t, you really should), then you need to be aware of a provision in the Defend Trade Secrets Act of 2016 (DTSA), which has been passed by the House and Senate and will become the law of the land once the legislation is signed by President Obama.
*This alert was originally posted on Arent Fox's Fashion Counsel blog. To read this alert in its entirety, please click here.