United States: Trade Secrets

Recent trade secret case law reveals critical standards for proving misappropriation, from the Ninth Circuit's reversal of a $57 million judgment over incorrect jury instructions on the "not readily ascertainable" element, to the Eighth Circuit's requirements for adequate trade secret identification. Courts continue to refine extraterritorial application of the DTSA and standards for demonstrating actual use of allegedly misappropriated information.

A recent Northern District of Texas ruling demonstrates how trade secret plaintiffs can successfully navigate the pleading stage paradox of describing confidential information with sufficient particularity to survive dismissal without revealing the secrets themselves. The decision provides a practical three-part framework for identifying trade secrets by category, offering document-level examples, and describing confidentiality measures that courts will accept at the motion to dismiss stage.

International contract manufacturing exposes companies to defective goods, stolen intellectual property, and payment disputes. Most disasters begin before production when buyers choose the wrong partner, disclose valuable information prematurely, or rely on inadequate agreements that fail to address quality standards, compliance requirements, and enforceable remedies.