Nathan Renov on Navigating Trade Secret Protection in the Age of AI and Global Markets

“Trade secret law has undergone a quiet but far-reaching transformation over the past decade,” he said. “In the U.S., the Defend Trade Secrets Act (DTSA) of 2016 created the first federal civil cause of action for trade secret misappropriation, aligning a patchwork of state laws under a single national standard. The DTSA’s reach is notably broad.”

“By contrast,” he said, “the European Union’s Trade Secrets Directive of the same year sought to harmonize national laws but did so with a greater emphasis on procedural fairness and proportionality. European courts tend to demand stronger evidence that a company has taken concrete, reasonable measures to maintain confidentiality before granting injunctive relief or damages, reflecting a more cautious and balanced approach.”

Renov also highlighted the increasingly blurred line between data security and trade secret misappropriation, noting that “Trade secret protection is increasingly shaped by how courts interpret “reasonable measures” in a digital environment.”

In addition, as AI, biotechnology and data-driven innovation reshape industries, courts and regulators are reexamining what qualifies as a trade secret.

“The rapid growth of AI and biotechnology is forcing courts and regulators to reconsider what information qualifies as a trade secret,” he said. “Increasingly, the focus has shifted from tangible inventions to data, algorithms, and technical processes that drive innovation but may not fit within traditional IP categories.”

“Israeli companies expanding abroad should work closely with counsel to develop a coordinated intellectual property strategy that integrates trade secret practices into broader patent, licensing and compliance frameworks,” he concluded.

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