Trade Secret Litigation Is Rising

The number of trade secret cases has increased 30% since 2010 according to the Intellectual Property and the U.S. Economy report. Here are several reasons for this surge and how corporations can deal with protecting their trade secrets.

These are the main reasons trade secret litigation is skyrocketing: 

1. Easily transfer of information

It wasn’t that long ago that companies stored their files in physical rooms and on tangible paper. Digital filing systems have only been a popular feature for about two decades, three decades max. And, as the years have gone by, its become quicker and faster to transfer large files across the internet. Large videos, photos, or millions of pages of documents can be easily emailed across the world in just a few seconds. 

Additionally, without the physical paper trail, files can be easily deleted. Email accounts can be purged and recovering those files can sometimes be impossible. Buildings worth of physical documents comprising trade secrets can be transferred to a person in a few seconds using just their phone.

A trade secret like a piece of software could be stolen fast if not protected. It’s no wonder that corporations are now more fearful than ever about their trade secrets being misappropriated or stolen.  

2. Worker mobility

Workers are no longer limited to where they can work and so it’s much easier for them to change jobs more often. This is especially true in tech fields where many employees only stay at a certain company for two years before finding a similar, but better paying job.

Many workers don’t even have to leave their home to work. They now have access to jobs all over the world by working online remotely. It is for this reason that trade secrets must be closely guarded.  Unfortunately that’s not always the case.

3. Changes to trade secret law

The Defend Trade Secrets Act of 2016 allowed trade secret cases to be tried federally. Prior to this law, corporations had to argue patent law infringement which was challenging to litigate.

What this means for companies nowadays: 

1. Who are you trusting? They need to determine who has access to their trade secrets, how they have access, what they know, and how it could damage your business if it was stolen.

2. They have to work with specialized attorneys who can draft employment agreements that specifically cover trade secrets in the nondisclosure agreements.

3. Now that the law has been changed, companies can more easily go after employees or partners that have stolen or misappropriated company trade secrets. Hiring a trade secret litigation attorney is the first step.

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