Secrecy in the spotlight: Trade secrets focus follows the money

With competitive industries fighting for employees, changes in legislation and damages regularly in the hundreds of millions, trade secrets is box office, says Tom Phillips.

It seems like barely a month goes by without another huge trade secrets damages award.

The past five years have seen some of the largest payouts in history, all in US cases where juries and judges consider how much a party is owed for the misappropriation, plus whether the act was willful and if the amount should be increased threefold.

Last month saw Western Digital leave court on the hook for $345 million and Phillips 66 for $605 million. Previously, Pegasystems v Appian (2022) delivered a staggering $2 billion payday for Appian, but the result was overturned and a new trial is on the cards.

Other cases, such as Syntel v The TriZetto Group ($855 million), Motorola Solutions et al v Hytera Communications ($764 million), and Taxinet v Santiago Leon ($300 million), all add up to the same thing: secrets litigation is box office.

But that’s only part of the story. This month, WIPR will explore trade secrets through these big ticket disputes but also the broader picture of why confidential information, trade secrets and know-how are critical IP tools for far more companies now than a decade ago.

With the US Federal Trade Commission’s controversial non-competes ban forcing companies to reconsider how they protect their most valuable secrets, this is a crucial time to focus on a topic that weighs heavy on the minds of in-house counsel.

It helps that we recently published this year’s Global Trade Secrets Rankings, giving us unparalleled insights into the top legal performers. Expect to see those named individuals in commentary over the coming weeks.

But we kick off by asking what is behind a series of cases in the US sports industry, courtesy of an author duo from Finnegan.

Stay tuned for more big reveals all through November.

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