Webinar Recap + Top five takeaways
In the recent In-House Connect webinar “Litigation Finance and Trade Secret Disputes: A Guide for In-House Counsel,” intellectual property expert Chris Buntel of Tangibly and senior investment counselor Stephanie Southwick of Law Finance Group shared valuable insights on navigating trade secret litigation and leveraging litigation finance. The session highlighted the attractiveness of trade secret cases for litigation funding and provided practical considerations for in-house counsel.
Here are the five key takeaways from the webinar.
- Flexibility in Damages Calculation
Trade secret cases offer more flexibility in calculating damages compared to other types of litigation. Plaintiffs can seek damages based on their losses, a reasonable royalty, or the defendant’s unjust enrichment. This flexibility can lead to substantial jury verdicts, making trade secret cases appealing for litigation funding.
- Attractiveness of Trade Secret Cases
Trade secret litigation is becoming increasingly attractive in the IP space due to its straightforward nature, shorter duration, and the potential for large damages awards. Unlike patent cases, trade secret disputes involve personal relationships, a sense of fairness, and often entail a compelling story of betrayal, making them more relatable to juries.
- Considerations for Litigation Funding
When evaluating trade secret cases for funding, key factors include the merits of the case, the strength of trade secret protection measures, employee procedures and policies, and any public disclosures. Funders also assess the defendant’s size, revenue, and history to determine the collectability of a potential judgment and consider the likelihood of settlement.
- Coexistence of Trade Secrets and Patents
Trade secrets can coexist with patents, providing dual protection for certain aspects of technology. While patents protect the core invention, trade secrets can safeguard improvements and refinements made after the patent application filing. However, it is crucial to be mindful of potential trade secret invalidation through disclosures in patent applications.
- Proactive Trade Secret Protection
To strengthen trade secret litigation cases and secure funding, companies must implement reasonable measures to protect their trade secrets. This includes maintaining confidentiality agreements, employee training, and robust policies and procedures. Proactive identification and protection of trade secrets through platforms like Tangibly can help mitigate the risk of litigation and attract potential investors.
The webinar provided valuable insights into the intersection of trade secret litigation and litigation finance. By understanding the attractiveness of trade secret cases, considering key factors for funding, leveraging the coexistence of trade secrets and patents, and proactively protecting trade secrets, in-house counsel can navigate disputes more effectively and explore litigation funding as a risk mitigation strategy.
Missed the session? You can watch it now via IHC On-Demand!
