The U.S. Court of Appeals for the Seventh Circuit recently rendered a pivotal decision in Motorola Solutions Inc. v. Hytera Communications Corporation Ltd., significantly expanding the scope of the Defend Trade Secrets Act (DTSA). On July 2, the court ruled that the DTSA extends to extraterritorial conduct under Title 18 of the U.S. Code, Section 1837. This decision upheld a substantial $407 million damages award against Hytera for what the court deemed “large and blatant theft of trade secrets.”
This ruling could have considerable implications for DTSA litigation. It provides plaintiffs with a formidable mechanism to pursue damages, heightening the incentive to file claims under the DTSA against defendants with substantial global sales, as these could lead to significant settlements. The decision underscores the Seventh Circuit’s firm stance on protecting intellectual property on a global scale, making it a crucial case for legal professionals to examine.