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What is the Defend Trade Secrets Act (DTSA), and How is Compliance Determined?

The Defend Trade Secrets Act (DTSA) was passed by Congress in 2016 as an amendment to the Economic Espionage Act (EEA). The law allows trade secret owners to directly sue individuals and organizations in federal courts for trade secret misappropriation. It was created to supplement existing state-level trade secret laws and provide a more uniform process for contesting trade secret misappropriation.

Trade secret owners who want to sue under the DTSA must ensure their methods and processes qualify as trade secrets. Although the DTSA’s definition of trade secrets is broad—encompassing all types and forms of business, financial, scientific, technical, engineering and economic information—the secrets themselves must derive value from being kept secret. In addition, the owner of the secrets must have taken reasonable measures to keep the secrets a secret. Owners could be entitled to injunctive relief, reasonable royalties, damages for unjust enrichment or actual loss, exemplary damages, and even attorneys’ fees depending on the severity of the misappropriation.

How Does DTSA Hosting Work?

Storing your trade secret files on Abacus Private Cloud can help your organization demonstrate it’s taking reasonable steps to keep your methods, processes, code, and know-how secret. Our ePHI and HIPAA-compliant cloud hosting platform is guarded by three layers of physical, server, and data security. This allows you to use multifactor authentication, NIST-compliant information and data handling protocols, SSL-A-rated data centers, SSL-encrypted device connections, and other top-flight protections to encrypt your secrets.

What Do I Need to Do to Audit & Maintain Compliance with the DTSA?

Our Private Cloud hosting specialists can work with you to ensure your account is configured to help protect your proprietary information from unauthorized access or disclosure. Our team can automate your updates, apply patches to firmware, and provide support to your day-to-day questions both day and night.

Are There Other AbacusNext Clients Who Are DTSA-compliant Today?

Absolutely! Contact us to see how Abacus Private Cloud can help you safeguard your trade secrets in compliance with DTSA.