6 Critical Challenges Surrounding Trade Secret Litigation

 Trade secrets are among the most valuable assets in an organization. It has the potential to unlock great opportunities when traded for potential business collaborations like mergers and acquisitions. However, it can also pose great risks when misused and shared without proper authorization. Most of these cases can lead to costly litigation.

Safeguarding trade secrets can be difficult as evidenced by the relatively high number of infringement cases where only a few have legally settled and some cases incurred insufficient compensation for damages caused by violators.

What makes trade secret litigation more complex?

1. Defining Trade Secrets 

The primary requirement for appealing or defending against infringement claims is to define trade secrets. As it is usually a mix of public information and existing technologies, the scope of ownership is often unclear.  

2. Handling Cases Involving Technologies

 Investigating technology-related cases are headaches to legal professionals as it is difficult to prove and understand.

3. Proving an Infringement 

It is difficult to prove a trade secret infringement as it requires evidence like proof of legitimate ownership, how it has been infringed, and the damages it caused, which takes a lot of effort to collect or produce. In many cases, only indirect evidence is available such as the launch of new products of the direct competitor.

4. Reviewing the System 

It will take a lot of precautions to establish a complete system to protect trade secrets from any leakage and abuse. However, trade secret owners should know that it is the most important thing to do to prevent risks.

5. Collecting Evidence

Failure to submit relevant evidence for a trade secret infringement case could lead to legal consequences for both parties. Thus, collecting proof as much as possible is crucial.

6. Choosing Competent Courts 

The infringed should choose a competent court with a deep understanding of the diversified nature of technology-related infringement cases to ensure favorable treatment of protection rights.

These factors have made it a painstaking and challenging task to protect trade secrets. Thus, trade secret owners should be more informed and proactive to defend their rights.

Join our LIVE webinar on Resolving Trade Secret Disputes: An Exploration to learn about the latest developments, challenges, and resolution strategies that will help you navigate the uncertainties in this field of law.