Many defendants facing a theft of trade secrets claim in\nTexas are about to lose one of the tools in their toolbox. Over the last two years, it has become an\nincreasingly common defense strategy at the outset of a case to file a motion\nto dismiss under the Texas Citizens Participation Act (the \u201cTCPA\u201d). <\/p>\n\n\n\n\n\n\n\n
The TCPA is often called the Texas SLAPP statute. SLAPP stands for Strategic Lawsuits Against\nPublic Participation. The statute was\ndesigned to prevent the use of lawsuits as a punitive tool to deter people from\nexercising their First Amendment rights to freedom of speech, freedom of\nassociation or the right to petition the government. The TCPA provides a defendant who is sued for\nexercising any of those rights the ability to file a motion to dismiss the\nlawsuit at the beginning of the case. \nWithout the statute, the defendant would typically have to wait until\nmuch later in the life of the case to obtain a ruling on a motion for summary\njudgment.<\/p>\n\n\n\n
Over the last two years, a growing number of Texas courts\nheld that the TCPA can apply to a plaintiff\u2019s claim for theft of trade secrets. This is about to come to an end in the most\ncommon types of trade secret cases.<\/p>\n\n\n\n
On September 1, 2019, an amendment to the TCPA will become\neffective. That amendment changes the statute\nto exclude from the TCPA\u2019s scope theft of trade secrets lawsuits arising from\nan officer-director, employee-employer or independent contractor relationship. Those are the majority of theft of trade\nsecret cases.<\/p>\n\n\n\n
Trade secrets are more often stolen by business insiders.\u00a0 These insiders could be officers of the company, directors, employees or independent contractors.\u00a0 Although it happens, it is a more unusual scenario for someone outside of the business to break in to steal trade secrets.\u00a0 Starting September 1, 2019, in the most common theft of trade secret cases \u2013 even if the cases involve defendants exercising First Amendment rights \u2013 the defendant will have to defend the lawsuit the old-fashioned way.\u00a0 There will be no early TCPA motion to dismiss option.<\/p>\n\n\n\n
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