icon on AI software and algorithms are well-suited for trade secret protection due to their intangible nature and the flexibility this form of intellectual property offers. However, the rapid pace of innovation, high financial stakes, and frequent movement of skilled engineers between companies create a volatile environment ripe for litigation. Many disputes center on whether AI-related code constitutes a true trade secret or merely general programming knowledge. Courts require that trade secrets remain genuinely secret and actively protected—passive reliance on confidentiality agreements is insufficient. Cases like OpenEvidence v Doximity illustrate how easily AI systems can be manipulated to reveal source code, raising questions about whether such information is truly confidential. Additionally, the definition of “improper means” in acquiring trade secrets is being tested, especially when competitors use AI prompts to extract sensitive data. Ultimately, the article underscores that companies must take proactive steps to safeguard their proprietary information, as courts will not enforce protections that businesses themselves fail to uphold.
This summary is based on the article by Joseph Barber for IAM Media.