Seventh Circuit Confirms Extraterritorial Reach of the Defend Trade Secrets Act

Under Motorola v. Hytera, a trade secret plaintiff can recover damages in the United States even on infringing sales that occurred outside the United States. The Seventh Circuit in Motorola confirmed that the Defend Trade Secrets Act can reach all of a defendant’s worldwide sales caused by the misappropriation, so long as — in the words of 18 U.S.C. § 1837(2) — “an act in furtherance” of the misappropriation was committed in the United States. As a result of the expansive reach of the Defend Trade Secrets Act, even in cases where the trade secret theft occurs mostly outside the United States, trade secret owners should consider whether they are still able to recover damages for foreign infringing sales in a U.S. court under the statute.

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