Trade secrets are critically important in today’s data-based and software-based economy, especially in industries where proprietary innovation, such as software, algorithms, and technical data, is essential to the operation of business — making it a performance differentiator among competitors. In the past decade, many companies have opted to protect and enforce their intellectual property as confidential trade secrets rather than as publicly disclosed patents or copyrights. Trade secrets are increasingly prominent in the medtech, biotech, traditional tech, banking, financial, insurance, and other professional services industries, where they can provide strong and lasting protection for important assets based on confidential research, scientific, technical, business, or financial information. Trade secret protection and enforcement is more important than ever in the rapidly growing AI-based economy, and especially now that non-compete agreements are under attack.
Ranked among the Top Firms in Intellectual Property and Trade Secret Litigation
IAM Patent 1000 2024
Sidley’s intellectual property lawyers have significant experience in analyzing, enforcing, and defending claims based on software, data, and algorithms. Our lawyers have long been involved in aggressively and effectively litigating these types of disputes on behalf of plaintiffs and defendants in state and federal courts throughout the country. We have the resources to initiate or respond to litigation as quickly as necessary with the involvement of cross-practice and industry-specific team members. At the same time, we can handle any related claims that may arise out of the alleged misconduct, including patent infringement, contract disputes, unfair competition, and employment-related claims.
For example, trade secrets may extend to a company’s:
- Proprietary algorithms
- Research and testing data
- Scientific and technical development data
- Software for managing and analyzing investment portfolios
- Investment or financial management algorithms and know-how
- Client and customer lists
- Pricing and marketing information
- Strategies, methods, and software for processing, analyzing, and modeling data
How We Add Value
Proactive protection of trade secrets and swift enforcement actions to address misappropriation of a company’s trade secrets have become increasingly important in today’s AI-assisted applications, mobile workforce, work-from-home environment, and electronically connected society. Our lawyers understand that threats to a company’s trade secrets often arise in the context of contractual relations involving the sharing of confidential information with others outside the company, in corporate transactions involving due diligence (especially failed acquisitions), in departing employees and/or groups of employees with valuable knowledge, and through a competitor’s direct efforts to improperly gain access to the company’s valuable information. We advise companies in negotiating and creating strategy for enforcement of their trade secret rights and against misappropriation or the risk of losing their rights.
In addition, we have vast experience in complex trade secret law and are aware of the evolving body of interwoven federal and state law, with significant remedies for the successful plaintiff, including punitive damages and lawyers’ fees. This may involve analysis of our client’s and/or a competitor’s software, code, databases, servers, internal policies, and processes, as well as knowledge of industry experts and standards. While trade secret claims may arise in the context of patent litigation, they are often filed as stand-alone claims or in conjunction with contract or other general business disputes. Regardless of their origin, these claims demand that litigation be pursued swiftly and effectively in order to protect our client’s interests.