Increase in Trade Secret Litigation Expected Following Recession

Following the 2007-2009 recession, trade secret cases increased to between 7,000 and 9,000 cases per year compared to 770-1,100 per year during the recession. As the United States faces a new economic crisis, companies should prepare for increased trade secret cases in the coming years. Typically these cases start to rise three years after the end of a recession. Unlike the previous recession, now plaintiffs have the option to file a trade secret misappropriation case in federal court. As more employees change jobs, particularly if they have been working from home with access to trade secret information, the risk of misappropriation of this information grows. As always, employers should pay close attention to who has access to their confidential information.