Commercial Litigation Update

Last summer, in a case of first impression, the U.S. Court of Appeals for the Seventh Circuit in Motorola Solutions, Inc. v. Hytera Communications Corporation Ltd held that the Defend Trade Secrets Act (the “DTSA”) rebuts the presumption against extraterritoriality—i.e., the principle that federal statutes should not be applied to conduct occurring outside of the United States, unless Congress explicitly states otherwise. 108 F.4th 458, 483 (7th Cir. 2024).

The Motorola court held that the DTSA applies to individuals and entities who are not located in the United States insofar as an “act in furtherance” of the misappropriation “was committed in the United States.” 18 U.S.C. § 1837(2). In construing what constitutes an “act in furtherance” of misappropriation, the Motorola court determined that the defendant, a Chinese company, had committed an “act in furtherance” of the misappropriation by marketing products embodying defendant’s stolen trade secrets via road shows and advertising activities it conducted in the United States. Id. 480-88.

A recent decision from the Northern District of Illinois continues to develop the DTSA’s “act in furtherance” element. In GTY Technology Holdings Inc. v. Euna Solutions, the court considered whether the DTSA applied to a Canadian citizen defendant, who had worked remotely for a Chicago-based company before he and his codefendant allegedly misappropriated plaintiffs’ trade secret information. No. 24-CV-9069, *8 (N.D. Ill. May 21, 2025). Plaintiffs alleged that defendant had engaged in conduct in the United States when, prior to his downloading the documents, he visited Chicago and discussed the documents with his codefendant. Id. Defendant moved to dismiss the DTSA claims, arguing that the statute did not apply to him because he was in Canada when he allegedly downloaded the plaintiffs’ documents, thereby allegedly committing the act of misappropriation outside of the U.S. Id.

Since 2018, seven states—California, Connecticut, Florida, Georgia, New York, Utah, and Virginia—have enacted laws requiring specific disclosures in commercial financing transactions. Three of those enactments came in 2023, and similar bills are currently pending in a handful of other states.

While these disclosure laws share the same aim—to encourage competition and provide for a more informed decision-making process—they are quite varied with respect to the transactions and institutions to which they apply as well as the information that must be disclosed. And a ...