Trade Secret Litigation Trends In Life Sciences

The Rise of Trade Secret Litigation

Over the past decade, trade secret litigation filings have grown substantially. Several key drivers have fueled this increase. First, the enactment of the Defend Trade Secrets Act ("DTSA") in 2016 created a federal private right of action for trade secret misappropriation, making it easier for plaintiffs to pursue claims in federal court. Second, heightened competition in health care and life sciences sectors has intensified disputes over proprietary information. Third, increased M&A activity and corporate restructuring have created more opportunities for the dissemination and potential misuse of confidential information. Finally, there is a growing awareness of intellectual property value beyond patents, with companies recognizing that trade secrets can be equally—if not more—valuable than patented innovations.