Federal Trade Secret Litigation Hits Record High in 2025

Event summary

  • Federal trade secret filings reached an all-time high of over 1,500 cases in 2025.
  • The Central District of California was the most active venue with 100 new lawsuits filed.
  • State-law-only trade secret claims increased in federal courts over the past two years.
  • Settlement rates for trade secret cases (65%) remain lower than other federal civil litigation categories.

The big picture

The surge in federal trade secret filings reflects heightened competition and the strategic importance of early case assessment. The shift towards state-law claims signals evolving legal standards, requiring practitioners to navigate multiple jurisdictions. Lex Machina's report underscores the high-stakes nature of these disputes, with significant damage awards and prolonged case timelines.

What we're watching

Venue Strategy
How the Central District of California's dominance in trade secret litigation will impact case outcomes and legal strategies.
Legal Standards Evolution
Whether the renewed reliance on state-law trade secret claims will continue to grow, affecting liability risk assessments.
Settlement Dynamics
The pace at which settlement rates in trade secret cases may align with other federal civil litigation categories.