United States: Trade Secrets

A Virginia federal court ruled that a company can still pursue trade secret claims even when a former employee never signed a nondisclosure agreement. The decision examines whether technical safeguards, access controls, and company policies can substitute for missing contractual protections in trade secret litigation.

Courts have escalated from warnings to enforcement on AI hallucinations in legal filings, with seven sanctions issued in the first six days of August 2026 alone. IP litigators face heightened exposure due to citation-heavy briefs, complex multi-factor tests, and cross-jurisdictional AI disclosure requirements that now include bar referrals for unverified AI-generated content.

Courts closely scrutinize covenants not to compete, examining factors like time restrictions, geographic scope, and whether employers have a legitimate protectable interest. Understanding what constitutes unfair competition versus ordinary competition is crucial for enforceability, as employers cannot simply prevent former employees from using general industry knowledge and skills.

On July 10, Apple filed a complaint in the U.S. District Court for the Northern District of California asserting claims under the federal Defend Trade Secrets Act of 2016 (DTSA) against OpenAI, its hardware affiliate...

As artificial intelligence tools become integral to legal practice, they introduce unprecedented vulnerabilities to attorney-client privilege and confidentiality protections. Recent U.S. court decisions reveal conflicting interpretations of whether documents generated using public AI platforms retain privileged status, raising critical questions about data retention policies, third-party disclosure, and the fundamental nature of confidential legal communications in the digital age.

Although a refined description may not be in hand when the complaint is filed, it should be prepared without delay so as to be available when the need to specify the substance of the trade secrets arises.

AI vendor contracts require specialized provisions beyond standard SaaS agreements to address unique risks around data use, model training, and intellectual property. This article examines the essential contractual clauses that protect businesses when engaging AI vendors, from precise definitions of AI services and data categories to ownership rights, confidentiality protections, and AI-specific security safeguards.

The Federal Circuit issued several significant rulings addressing trade secret statute of limitations, patent eligibility under Section 101, jury instruction requirements, and the reviewability of IPR institution decisions. These precedential opinions establish important standards for when plaintiffs must file misappropriation claims, how abstract ideas are evaluated in agricultural technology patents, and proper procedures for patent infringement trials involving multiple patents.

On June 9, 2026, Express Scripts, Inc. (Express Scripts) filed an action against Texas Attorney General Ken Paxton, seeking a declaratory judgment to prevent the Texas A&M University System (Texas A&M) from releasing an unredacted version of a contract between Express Scripts and Texas A&M.