USA – TEXAS Trends and Developments Contributed by: Jeff Homrig, Gaby LaHatte and Heather Blacklaws, Weil, Gotshal & Manges LLP
Conclusion The rise in trade secret claims in the United States reflects, in great part, the widening recognition that trade secret litigation is often the most powerful weap - on in one’s IP arsenal. Not merely to right the wrong and regain control of the stolen material, but also – where warranted by the facts – to exert decisive pres - sure on other market participants to achieve business goals. Because of their unique attributes, Texas courts have become a go-to forum for trade secret litigation, including for strategic trade secret litigation. For all the reasons discussed above, we can expect both trends to accelerate in the coming years.
The first jury trial in the Texas Business Court’s Third Division recently produced a verdict that serves as a promising precedent for plaintiffs with trade secret claims. In that case, ES3 Minerals alleged that three former senior executives and their competing entity wilfully and maliciously misappropriated ES3’s trade secrets. ES3 Minerals, LLC v Nicholas Kreines , No 24-BC03B-0005 Jury Charge at 7-9, 19 (Tex. Bus. Ct. 3rd Div March 9, 2026). The jury unanimously agreed, finding that ES3’s trade secret system was misappro - priated, had a value of USD40 million, and that the defendants should be assessed an additional USD9 million in exemplary damages because the misappro - priation was wilful and malicious. Id. at 7-9, 14, 20. The jury returned their verdict on 16 March 2026, less than two years after the case was filed, and the Court is expected to enter a final judgment on the jury’s findings and address post-trial motions and potential injunctive relief in the coming weeks.
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