New Whistleblower Protections Could Endanger Trade Secrets

Law360, New York (May 18, 2016, 11:42 AM EDT) -- New laws protecting whistleblowers may jeopardize employers' trade secrets by allowing whistleblowers to disclose them to the government. The trade secrets then could be produced to virtually anyone in response to Freedom of Information Act requests — even though the FOIA sets forth an exemption for trade secrets — and thus lose their competitive value. Ironically, the new Defend Trade Secrets Act is a prime example. This statute was enacted for the purpose of protecting trade secrets, yet it shields whistleblowers who hand trade secrets over to federal, state or local government officials for the purpose of reporting or investigating a suspected violation of the law. It provides employers with an economic incentive to notify employees of this immunity....

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