Key Takeaways: Record Surge In Trade Secret Litigation

Recent data confirms that trade secret litigation is at an all‑time high, reflecting a fundamental shift in how companies protect proprietary information. As panelists during the recent Lex Machina webinar "Trends in Trade Secret Litigation: Key Insights from 2026 Lex Machina Report," we discussed the drivers behind this surge and what companies should expect going forward.

A central takeaway from the discussion was the critical need for speed. Practitioners are seeing trade secret claims rise, driven largely by employee mobility and competitive hiring, particularly where employees move directly to competitors with access to sensitive information. As a result, companies are becoming more sophisticated about identifying potential misappropriation early and acting quickly to protect trade secrets before competitive harm occurs.

Another key driver is the maturation of damages models under the Defend Trade Secrets Act. Courts and juries are increasingly comfortable with complex damages theories, contributing to larger and more consistent awards. Recent verdicts — including awards exceeding $200 million — have reinforced trade secret litigation as a high‑stakes enforcement tool rather than a secondary alternative to patent claims.

Another theme was the growing wave of AI‑related trade secret litigation, where cases involving both the theft of information and its subsequent use are consistently producing substantial damage awards. Based on current analytics, these trends show no signs of slowing. Rapid technological advancement, combined with increasingly sophisticated digital forensics, is making it easier to detect misconduct—and more costly for those who fail to act promptly.

Practical Takeaway for Companies and Counsel

As trade secret litigation continues to grow, the message from the panel was clear: trade secret protection is now a core risk‑management issue, not just a litigation concern. Companies should proactively audit confidential information, strengthen onboarding and offboarding practices, and be prepared to act swiftly when misappropriation is suspected.

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