Trade secrets are among a company’s most valuable — and most vulnerable — assets.
Proprietary formulas, customer lists, pricing models, and internal processes can provide a competitive edge. But when an employee departs for a competitor, or a partnership goes sour, that advantage can suddenly be at risk.
Trade secrets disputes can arise quickly and carry significant consequences: injunctions that halt operations, reputational harm, and damages that reach into the millions.
Three factors tend to shape these complex litigation cases: prevention, speed, and defining what counts as a trade secret in the first place.
Prevention Matters as Much as Protection in Trade Secrets Litigation
The strongest trade secrets cases start long before any lawsuit.
Courts expect to see that a business made real efforts to keep its information confidential.
That means companies should have safeguards in place — such as non-disclosure agreements (NDAs), clear employee policies, and limits on who can access sensitive data.
Without these protections, even highly valuable information may be difficult to defend in court.
Trade Secrets Litigation Moves Quickly
In many trade secrets cases, the first move is a request for an emergency injunction to stop use of the information.
That can put a company in court within days of filing — or of being served.
This accelerated timeline leaves little room for delay, making it essential to have an experienced trade secrets attorney ready to act immediately.
What Counts as a Trade Secret
Courts don’t just accept a company’s assertion that certain information is a “trade secret.”
To qualify, the information must be confidential, provide an economic advantage, and be subject to reasonable efforts to keep it secret.
Some claims fall apart because the information is already common in the industry or because the business never put real protections in place.
Meanwhile, individuals can find themselves named in lawsuits simply because they changed jobs, even if they never intended to misuse confidential information.
Sorting out what does — and doesn’t — count as a trade secret is often central to how these cases are resolved.
Swift Legal Action Is Key
Whether safeguarding proprietary information or defending against allegations, the key is swift action, clear strategy, and informed decision-making.
If your business is facing a trade secrets dispute, contact Alex Bartko Law for a consultation now.
Frequently Asked Questions About Trade Secrets Litigation
What qualifies as a “trade secret”?
A trade secret is information that (1) derives independent economic value from not being generally known, and (2) is subject to reasonable efforts to keep it secret. Examples include customer databases, algorithms, manufacturing processes, and pricing structures, provided the company has taken steps to protect them.
How do trade secrets cases typically begin?
Often, trade secrets litigation begins when a former employee joins a competitor or launches a new venture. If the former employer believes confidential information is being used, they may file suit. The initial phase usually involves requests for emergency relief to prevent further disclosure or use of the alleged trade secrets.
What are the risks in trade secret litigation?
For plaintiffs, the loss of trade secrets can erode a competitive advantage built over years. For defendants, litigation may lead to restrictions on new employment, reputational damage, and exposure to damages that exceed personal resources. Both sides face fast-moving, resource-intensive disputes with significant implications.
