USA – TEXAS Trends and Developments Contributed by: Jeff Homrig, Gaby LaHatte and Heather Blacklaws, Weil, Gotshal & Manges LLP
Weil, Gotshal & Manges LLP 600 Congress Avenue Suite 2170 Austin TX 78701 USA Tel: +1 512 487 1480 Email: daniel.mcmenamin@weil.com Web: www.weil.com/locations/austin
Trade Secrets in Texas: Why the Lone Star State is a Go-To Forum Trade secret litigation in the United States has emerged as a powerful IP tool – often the most powerful IP tool – to shape one’s market and achieve business goals. There is a host of reasons for this: • the flexibility plaintiffs have in defining trade secrets at issue; • the availability of unjust enrichment damages, which are not available in patent cases and which frequently dwarf the other available forms of dam - ages common to trade secret and patent cases (lost profits and reasonable royalty); • the sweeping preliminary and permanent injunctive relief available, and the frequency with which it is granted; • the enactment of the federal Defend Trade Secrets Act, with its global reach, enhanced injunctive rem - edies, and access to federal courts; and • the ubiquity of circumstances giving rise to trade secret actions, including employee departures, joint ventures, supplier and customer relationships, and failed M&A deals. Effective trade secret litigation can reshape markets, determine dominant players, and effect significant transfers of wealth. It is natural, then, that trade secret litigation is on the rise in the United States. The sheer numbers continue to grow, rising to more than 1,600 cases filed nation - wide in 2025. The volume of strategic trade secret cases has increased significantly, as well. In the not-
too-distant past, patent infringement actions were the IP tool most commonly used to achieve strategic ends, while trade secret cases were predominantly reactive, with plaintiffs’ primary goal being the recov - ery of lost property. No more. Recognising the inher - ent advantages of trade secret litigation, more and more companies are weaponising their trade secrets – ie, pursuing meritorious or otherwise colourable trade secret claims to achieve strategic business ends, rather than merely to recover the property that was allegedly stolen. Also natural is that Texas state and federal courts are seeing an ample share of these disputes. It is com - mon knowledge that Texas is a destination venue for patent disputes, hosting two of the three busiest patent infringement dockets in the country. Less well known is that Texas is also a destination venue for trade secret disputes. At the federal level, three of the five judges with the largest trade secret dockets over the last decade sit in Texas – Judges Albright and Pit - man in the Western District, and Judge Mazzant in the Eastern District. Texas state courts teem with trade secret actions, too; the Texas Business Court’s juris - diction was recently expanded to encompass trade secrets, and Texas district courts remain a hotbed for these disputes. This article explores the factors that led to the growth in volume and significance of trade secret cases in Texas. Background Traditional intellectual property tools – patents, copy - rights, and trade marks – cover specific innovations, but they are often not the best way to protect today’s
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