Why the Sudden Rush to Protect Trade Secrets at the U.S. International Trade Commission?

Abstract

Most businesses, whether they know it or not, rely extensively on trade secrets — the processes, practices, software, strategic data, and other valuable confidential information not known to, or easily ascertained by, the public — to gain a competitive edge in the marketplace. Indeed, recent estimates value trade secrets owned by publicly traded U.S. companies at around $5 trillion. In our globally interconnected business world, the theft and unauthorized disclosure of trade secrets to competitors or to the public almost always results in the loss of that competitive edge, loss of market share, and can send stock prices tumbling. Responding, a number of companies suffering from industrial espionage have chosen to file a complaint with the U.S. International Trade Commission (ITC). This rush to the ITC raises intriguing questions: Why the ITC? What advantages could it offer? Why not file in U.S. district court or state court? The answer, in a single word: Success. Specifically, the recent success Amsted Industries, Inc. enjoyed pursuing trade secret misappropriation claims at the ITC after a Chinese company hired away its employees and stole its trade secrets.

Keywords: Tianrui, Trade Secrets, ITC