Policy Concentrates LEGISLATION
Congress passes bill to deter theft of trade secrets Measure lets companies seek compensation in federal courts
The U.S. House of Representatives last week approved the Defend Trade Secrets Act of 2016 (S. 1890) on a 410-2 vote. The Senate passed the measure 87-0 on April 4. Under the legislation, companies for the first time will be allowed to file lawsuits and seek monetary compensation in federal courts for the theft of trade secrets. This type of information includes manufacturing processes, formulas, and customer lists. “This bill will help American innovators protect their intellectual property from criminal theft by foreign agents and those engaging in economic espionage,” House Judiciary Committee Chairman Bob Goodlatte (R-Va.) says. The U.S. Chamber of Commerce’s Glob-
CONSUMER SAFETY
al Intellectual Property Center (GIPC) worked with more than 40 trade associations and companies to push the measure through Congress. The business coalition included Dow Chemical, DuPont, Eli Lilly & Co., Johnson & Johnson, and Pfizer. “The trade secrets, unique formulas, and know-how that set these companies apart are constantly under attack from other countries and those wishing to steal their success,” says David Hirschmann, CEO of GIPC. Congress made trade-secret theft a federal crime in 1996. But the Economic Espionage Act provides only for criminal cases lodged by the Justice Department. Companies are left to file civil lawsuits under state laws. The legislation’s supporters say the Justice Department has limited resources to devote to commercial theft cases. Last year, federal prosecutors brought only 15 criminal cases for trade-secret theft. Advocates also argue that a patchwork of state laws are ill-equipped to handle cases that cross state lines or involve foreign theft of company documents. S. 1890 creates a uniform national standard for trade-secret misappropriation. Under the legislation, companies will be allowed to seek an order from a judge directing U.S. marshals to seize stolen information before it is used or taken out of the country. Companies could also win court orders to prevent the dissemination of a purloined trade secret and could seek compensation for losses.—GLENN HESS, special to C&EN
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C&EN | CEN.ACS.ORG | MAY 2, 2016
U.S. senators push for ban on pure caffeine Five U.S. senators are urging FDA to ban retail sales and marketing of bulk powdered caffeine after the 2014 deaths of two men who consumed too much of the substance. Last week, Sens. Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), Ed Markey (D-Mass.), and Chuck Schumer (D-N.Y.) joined the consumer group Center for Science in the Public Interest (CSPI) and families of the men who overdosed to raise awareness about the dangers of pure caffeine. The deaths of the men, aged 18 and 24, prompted FDA to send warning letters last year to five distributors of powdered caffeine, claiming that the dietary supplements present “a significant or unreasonable risk of illness or injury.” Those companies are no longer marketing the substance directly to consumers, but at least 19 others are, CSPI says. “It is disturbing that despite two unintended and untimely deaths associated with powdered caffeine, the FDA has done little to regulate these products or adequately enforce the standards in place to protect Americans from the substantial risk associated with ingesting powdered caffeine in any form,” the senators write in an April 26 letter to FDA. “Unfortunately, in the absence of strong regulatory action, companies are continuing to develop new delivery mechanisms and creative advertising ploys to attract new powdered caffeine users.”—BRITT ERICKSON
CREDIT: AOC/ZUMA PRESS/NEWSCOM (CAPITOL); CSPI (CAFFEINE POWDER)
Trade secrets of pharmaceutical, chemical, and other companies will soon enjoy greater legal protections against theft under bipartisan legislation headed to the White House for President Barack Obama’s expected signature.
U.S. lawmakers want FDA to halt sales of bulk caffeine powder.
