Seventh Circuit Expands U.S. Trade Secrets Law with Landmark Ruling

9/3/2024

The Seventh Circuit’s recent decision to uphold Motorola’s $407 million trade secrets award against Chinese rival Hytera Communications Corp. establishes a pivotal precedent in the extension of U.S. trade secrets law beyond its borders. The ruling affirms that the Defend Trade Secrets Act (DTSA) can be applied to cases with even minimal connections to the U.S., aligning it with the broader jurisdiction established by the Economic Espionage Act. This decision clarifies that U.S. companies can pursue legal action in domestic courts for trade secret theft occurring overseas, provided there is a discernible link to the U.S.

This ruling, the first of its kind from an appellate court, underscores the increasing complexity of cross-border trade secrets disputes. It demonstrates that U.S. courts are prepared to extend their jurisdiction to safeguard domestic companies from foreign entities engaging in illicit practices. While this expanded reach offers stronger protections for U.S. businesses, it also raises concerns about potential legal conflicts with foreign jurisdictions and the practical difficulties of enforcing such rulings internationally. Legal experts are now continuing to observe how this decision will shape future cases and impact the global enforcement of intellectual property rights.

To read more about the decision in Motorola Solutions Inc. v. Hytera Communications Corp. Ltd., click here.

To read how CASTAYBERT PLLC can assist you with Trade Secret matters, click here.