Andrew Bridenstine, Associate Member 2025-2026
Intellectual Property and Computer Law Journal
I. Introduction
As millions of employees trade their cubicles for kitchen tables, companies are realizing that their most valuable assets, trade secrets, may be the most difficult to protect. This blog delves into the world of trade secrets and explores how the rise of work-from-home arrangements has created challenges for employers seeking to protect their trade secrets. Part II examines the background on what trade secrets are and the risks introduced by the rise in remote work. Part III discusses recent court decisions that have laid a foundation for how businesses should protect their trade secrets. Additionally, Part III explores how the abrupt switch to remote work left businesses scrambling, as they did not have time to set up the necessary protocols for their business operations and employees.[1] This blog concludes by providing a framework for employees and employers to follow to ensure that their existing policies address the evolving work-from-home model.[2]
II. Background
What is a Trade Secret?
Whether it is the recipe for Big Macs or the formula for Pepsi, trade secrets derive value from their secrecy. The Uniform Trade Secrets Act (UTSA) defines a trade secret as any information that derives economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy.[3] In addition to not being readily known, information only qualifies as a trade secret if its owner has taken reasonable measures to keep such information secret.[4] Almost every company has some sort of trade secret, whether it is financial information, collections of data, or customer lists, so employers must take the utmost care in protecting their trade secrets.[5]
Before 2018, only 3.6% of the workforce worked remotely, and after the COVID-19 pandemic, that number rose to 25-30%.[6] Before remote work, most companies maintained the security of their trade secrets in a physical office building.[7] However, with more employees working from home, companies are scrambling to protect their most precious assets.[8] Not having employees under one roof presents exceptional challenges for trade secret owners seeking to ensure that information does not fall into the wrong hands. As the modern workplace continues to evolve, companies must adapt quickly and implement stronger safeguards to preserve the confidentiality and value of their trade secrets.
Trade Secret Risks due to Remote Work
The Defend Trade Secrets Act (DTSA) allows companies to sue for trade secret misappropriation, and it also encourages businesses to take reasonable measures to maintain the secrecy of their information.[9] As employees have begun spending more time away from the physical office building, companies have had to take additional steps to ensure that they are maintaining the secrecy of their information. Before remote work, “reasonable measures” included things like using secure servers or limiting access to certain office spaces, but this has all changed as many more people have started to work from home.[10]
With the rise in remote work, more employees are discussing trade secrets over teleconferences or posting about confidential information on social media, which makes it more difficult for companies to prove they took reasonable efforts to maintain secrecy.[11] If a company cannot confirm that it took reasonable steps to maintain the confidentiality of its trade secrets, it becomes more challenging for the company to claim misappropriation.[12] Employees no longer have to gather in a conference room to discuss sensitive information; they can now meet virtually, which presents new challenges for employers.[13]
Businesses must now take increased security measures to satisfy the “reasonable steps” requirement for maintaining confidentiality.[14] The traditional means of protecting trade secrets are no longer appropriate due to the increased security risks that the technological advancements in remote work present.[15] The rise in remote work has led employees to feel less attached to their companies, which could lead individuals to divulge precious information they once would have never thought to disclose. Confidential information is now more accessible and less restricted because businesses are finding that the “old” ways of limiting access to certain information no longer work when most of the workforce is remote.[16] For example, keeping a single physical copy of a confidential document is no longer feasible.[17] Additionally, employees can now discreetly photograph their computer screens to copy sensitive information.[18]
These are some of the challenges that employers face when a large percentage of their employees work from home rather than under one roof. Due to the rise of these issues, courts and companies have been forced to change the way they govern to ensure that their most private matters retain the proper protection.
III. Discussion
Litigation Surrounding Recent Trade Secret Disputes
With change comes disputes, and with the rise of remote work, courts have had to determine whether certain practices are consistent with the requirements of trade secret maintenance. For example, in API Americas Inc. v. Miller, the U.S. District Court for the District of Kansas overruled the defendant’s argument that his work-from-home agreement meant that his employer failed to use reasonable measures.[19] The court based its rationale on the fact that the defendant signed a non-compete agreement with API, which satisfied the reasonable measures prong of the trade secret analysis.[20]
Other factors courts examine to determine whether a company took reasonable steps to protect its trade secrets include the following: whether the company uses video calls to reach employees who do not have a reason to know about the trade secrets, whether the company records video calls without a significant justification, or whether the company allows employees to discuss trade secrets using the chat feature on video conference platforms.[21] Companies should make sure their company handbooks are up to date and that they are using heightened security measures, such as dual-password protection and multi-factor authentication.[22] The district court in TileBar held that, because the company took these additional steps to protect its trade secrets, the court would not dismiss the case.[23] As seen in prior rulings, the development of new technology requires employers to have strong internal safeguards to protect their confidential information.[24]
Another issue that has arisen with the popularity of remote work is the sense of detachment employees feel from their companies.[25] This feeling can lead employees to become less vigilant about their trade secret obligations and less likely to follow issued protocols.[26] In these cases, employers must take steps to ensure that employees have done things like delete software program data from personal devices. If employers do not take this step, courts are reluctant to grant them relief.[27] These recent court decisions are instructive for employers who wish to learn about how to best protect their trade secrets.
Key Lessons from Recent Court Decisions
The rise of remote work has heightened the risk of misappropriation of trade secrets, which has led businesses to take additional steps to ensure that their trade secrets are protected.[28] Guided by court precedent, employers have been able to determine what they need to do to remain compliant with the new standards. For example, employers must remind remote workers to be vigilant and not inadvertently give others access to confidential information.[29]
Another lesson that can be learned from recent court decisions is that employees must make sure they follow their employer’s policies related to the protection of confidential information.[30] However, not all of the responsibility falls on the employee. Given the advancement of technology, companies must also change their policies to make sure they comply with updated standards. All of these practices are very important because when trade secrets are divulged, employers can face serious consequences. Therefore, every company needs to take proactive steps to protect its most valuable information.
Guiding Employers to Ensure Trade Secret Protection
Given that traditional security protocols, such as keycard access and IT supervision, are no longer practical, organizations must rethink their security strategies to protect sensitive data.[31] Employers should focus on updating their policies and agreements to clarify remote work handling expectations, which prohibit reverse engineering and encompass technological advancement.[32] For example, reverse engineering involves dismantling and analyzing a product to understand how it operates and what its trade secrets are.[33] Companies must make sure they limit the ability for their trade secrets to be reverse-engineered to protect their secrets. Additionally, non-disclosures have become more important because they can ensure that employees with access to confidential information cannot disclose what they are working on.[34]
In addition to written policies, employers should also make sure to inform their employees of the importance of confidentiality, ensure that the employees have a secure workspace, and emphasize the importance of maintaining trust and confidence when discussing confidential work matters.[35] Courts have made it clear that if an employer can show that they have taken steps to ensure the protection of their trade secrets, the court will entitle them to relief if misappropriation occurs. Therefore, companies must properly train their employees and implement strategies to curb the possibility of breaches with regard to trade secrets.
IV. Conclusion
The number of people who work remotely has significantly risen since the COVID-19 pandemic, and with this change, companies are facing additional legal challenges. Employees no longer work in a centralized office building, but rather work from all over the world. Due to this change, companies are struggling to maintain the confidentiality of their trade secrets. Even when companies’ trade secrets are leaked, courts have sometimes been reluctant to award damages to the affected employer if the employer cannot show that they have taken reasonable measures to protect their secrets.
Companies can demonstrate that they took reasonable measures by implementing employee training, updating company policies, and using technological safeguards such as multi-factor authentication and device encryption.[36] Additionally, companies need to stay current with recent court rulings to understand how the guidelines for trade secrets are evolving and ensure they remain compliant. By doing so, businesses can not only strengthen their legal protections but also build a culture of confidentiality that helps prevent future trade secret disputes. Ultimately, companies that treat trade secret protection as an ongoing issue and make it a strategic priority will be best equipped to navigate the challenges of an increasingly mobile workforce.
[1] Arya Dhakal, Rethinking Trade Secrets Under the Work From Home Model, NYU J. Intell. Prop. & Ent. L. (Mar. 3, 2021), https://jipel.law.nyu.edu/rethinking-trade-secrets-under-the-work-from-home-model/ [https://perma.cc/LRR8-6Z3K].
[2] Id.
[3] See 18 U.S.C. §1839(b).
[4] Dhakal, supra note 1.
[5] Jillian Beck & Cristina Rodriguez, How to Protect Your Trade Secrets in a Hybrid Work Environment, Chief Executive (Jan. 27, 2023), https://chiefexecutive.net/how-to-protect-your-trade-secrets-in-a-hybrid-work-environment/ [https://perma.cc/LSQ4-8TTM].
[6] Jacqueline A. Hayduk & John F. Birmingham Jr., The Tools Used in Modern Business – Such as Videoconferencing – and the Social Media Culture Create Real Challenges to Protecting Trade Secrets, Nat’l L. Rev. (Feb. 16, 2021), https://www.jdsupra.com/legalnews/the-tools-used-in-modern-business-such-8361222/ [https://perma.cc/4RX6-V35R].
[7] Christopher Adams et al., Trade Secrets: Now Even Your Dog Knows Them (Thanks, Remote Work & AI), Global IP & Tech. L. Blog (Aug. 5, 2025), https://www.iptechblog.com/2025/08/trade-secrets-now-even-your-dog-knows-them-thanks-remote-work-ai/ [https://perma.cc/8YYA-V3XX].
[8] Dawn Mertineit, Security From Afar: How Best to Protect Trade Secrets in a World of Remote Working, Zoombombing, and Uncertainty, Trading Secrets (May 20, 2020), https://www.tradesecretslaw.com/2020/05/articles/trade-secrets/security-from-afar-how-best-to-protect-trade-secrets-in-a-world-of-remote-working-zoombombing-and-uncertainty/ [https://perma.cc/A2GQ-YQPJ].
[9] Daphne Ekpe, Cybersecurity and trade secret theft in remote work environments: Lessons from the COVID-19 era, World J. Advanced Res. & Rev. (2022).
[10] Id.
[11] Hayduk & Birmingham, supra note 6.
[12] Id.
[13] Mertineit, supra note 8.
[14] Hayduk & Birmingham, supra note 6.
[15] Id.
[16] Greg Bombard, Protecting Trade Secrets in the Era of Remote Working, Managing Intell. Prop. 53 (2020).
[17] Id. at 55.
[18] Id.
[19] Id.; see API Ams. Inc. v. Miller, No. 17-cv-4008, 2017 U.S. Dist. LEXIS 183865 (D. Kan. Nov. 6, 2017).
[20] Id.
[21] Hayduk & Birmingham, supra note 6.
[22] Adams et al., supra note 7.
[23] Id.; see Tilebar v. Glazzio Tiles, LLC, No. 21-cv-11583, 2022 U.S. Dist. LEXIS 130579 (S.D.N.Y. July 25, 2022).
[24] Id.
[25] Id.
[26] Id.
[27] Id.; see DM Trans, LLC v. Scott, 38 F.4th 608 (7th Cir. 2022).
[28] Angela Chuang, Lesson Learned: Man Charged with Insider Trading After Misappropriating Information from Wife’s Work-From-Home Calls, Trade Secrets L. Blog (Apr. 1, 2024), https://www.laboremploymentlawblog.com/2024/03/articles/trade-secret-misappropriation/lesson-learned-man-charged-with-insider-trading-after-misappropriating-information-from-wifes-work-from-home-calls/ [https://perma.cc/SS6G-S5S6].
[29] Id.
[30] Adams et al., supra note 7.
[31] Id.
[32] Id.
[33] See Reverse Engineering as an Exception to Trade Secrets Claim, Ventham L. Firm (Oct. 21, 2024), https://vethanlaw.com/blog/2024/10/reverse-engineering-as-an-exception-to-trade-secrets-claims/ [https://perma.cc/BN7W-WWEL].
[34] Mertineit, supra note 8.
[35] Adams et al., supra note 7.
[36] Id.
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