In Shrinking Energy Sector, Spike In Trade Secret Litigation

With continued depressed prices, companies in the stressed energy sector are turning to trade secret litigation, suing former employees and sometimes each other. Lawyers interviewed for this report from Bloomberg BNA explain why trade secret actions make sense compared to patent litigation for many companies. Among the advantages: Unlike patents, trade secrets have no expiration date, and decisions in trade secrets cases are more likely to stick, as appeals go before a federal appeals court – the Fifth Circuit for most of these energy sectors cases – rather than the Court of Appeals for the Federal Circuit, which has a far higher reversal rate. The target of these lawsuits may be a former employee who went off to start another company, or it could be a former or potential joint venture partner.