S.Amdt. 6301

This amendment, submitted by Mr. Sheehy and Ms. Warren, aims to add two new sections to bill S. 4784.

Trade Secret Cases

The first part changes section 1498 of title 28, United States Code, regarding trade secrets misappropriated by the United States, its owned or controlled corporations, or authorized contractors and subcontractors. It establishes that:

• The exclusive legal action for such misappropriation is a lawsuit by the trade secret owner against the United States in the United States Court of Federal Claims to recover reasonable and entire compensation.
• The court will use its own precedent and Federal law rather than state trade secret laws.
• Government employees can sue the Government under this section, unless they were in a position to order or influence the disclosure of the secret.
• No right of action exists for trade secrets developed by a person during U.S. employment using Government time, materials, facilities, or as part of official functions.
• Government agencies or owned corporations are authorized to settle these claims administratively before a lawsuit is started.
• Recoveries are generally limited to misappropriations committed within three years before a complaint is filed, though time spent waiting for a government denial of a written claim does not count toward those three years.

Specific Performance for Defense Contracts

The second part adds section 3865 to chapter 281 of title 10, United States Code. This allows the Federal Government to:

• Sue in a U.S. district court for an order of specific performance to force the delivery of "covered information" (which includes intellectual property, technical data, computer software, or documentation) required by a "covered legal instrument" (such as a contract).
• Ask the court to determine the government's rights to the information and order the removal or correction of improper markings.
• Bring this action if a contractor fails or refuses to deliver the information within 30 days of a final decision by a contracting officer.
• Proceed with this action even if the contractor is appealing or challenging the contracting officer's decision.