To many hedge fund managers, there is little more important than protecting the fund’s trade secrets – whether they are trading models, track records, client lists or trading positions – from wrongful disclosure. On May 11, 2016, hedge fund managers were given a powerful new tool to protect this proprietary information when President Obama signed into law the Defend Trade Secrets Act of 2016 (DTSA). See “DTSA Provides Hedge Fund Managers With Protection for Proprietary Trading Technology and Other Trade Secrets
” (Jun. 23, 2016). In a guest article, David I. Greenberger, partner at Bailey Duquette P.C., describes how hedge funds can take full advantage of the protections and remedies the DTSA affords – including the right to recover punitive damages and reasonable attorney’s fees – by complying with its requirements to provide certain notices to their employees, consultants and contractors. Additionally, Greenberger suggests that hedge fund managers take immediate steps to ensure that any agreements they enter into with such individuals related to trade secret usage are in writing and contain the requisite notices. Finally, he describes how managers should modify operative agreements that existed prior to the enactment of the DTSA to include the necessary immunity notice provisions. For more on protecting trade secrets, see “Procedures for Hedge Fund Managers to Safeguard Trade Secrets From Rogue Employees
” (Jul. 21, 2016); and “How Can Hedge Fund Managers Protect Themselves Against Trade Secrets Claims?
” (May 16, 2014).