Cochran Votes to Strengthen Protection for Trade Secrets

Press Release

U.S. Senator Thad Cochran (R-Miss.) today voted for bipartisan legislation to better protect American proprietary trade secrets from theft.

The Defend Trade Secrets Act (S.1890), approved 87 to 0, would create a uniform national legal standard for intellectual property laws related to trade secrets, which are currently governed by disparate laws in 47 different states.

"The American system of intellectual property protection and enforcement drives innovation, investment and job creation. Global competition makes these assets targets for theft and exploitation," said Cochran, who cosponsored the bill. "This legislation is intended to increase stability and security for businesses in Mississippi and throughout the country."

Federal law has not kept pace with technological innovation and has limitations that are inefficient and inconsistent with other areas of intellectual property law.

An important form of intellectual property, "trade secrets" refers to confidential, commercially valuable proprietary information, and can range from recipes for food and drink to complex computer algorithms and financial models. According to the U.S. Chamber of Commerce, publicly traded U.S. companies own an estimated $5 trillion worth of trade secrets.

S.1890 provides for expedited relief on an ex parte basis to preserve evidence and prevent disclosure, and provides a civil remedy for misappropriation to account for the economic harm to plaintiffs when trade secrets are stolen. This legislation would ensure that trade secrets are given similar protections afforded to other forms of intellectual property including patents, trademarks, and copyrights. It would not preempt state trade secret laws and has safeguards in place for seizure of property and whistleblowers.

The Senate measure will now be referred to the House of Representatives for consideration.

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