How a Changing Nation Is Fueling the Rise of Trade Secret Litigation

David S. Almeling, O'Melveny & Myers LLP

Abstract

Reports of pilfered trade secrets have grown increasingly common, and as recent studies demonstrate, trade secret litigation is on the rise. A 2010 study of the federal courts shows that trade secret litigation has grown exponentially while litigation in general has decreased. And a 2011 study of state courts shows that trade secret litigation is increasing at a faster rate than the rate of litigation in general. This essay asks: Why? Why is trade secret litigation more prevalent than ever? This essay posits — for the first time — explanations for the fact that trade secrets are increasingly important to the American economy. Specifically, this essay presents six explanations, ranging from technology to demographics to economics, for the increase in trade secret litigation.