December Edition 2025

28 firms to implement formal internal controls to protect sensitive information. These regional differences hold clear lessons for Israeli companies operating globally. Courts everywhere now expect companies to document the steps they take to protect their confidential information. “Reasonable measures” is no longer a theoretical standard but a practical test of compliance culture. Israeli companies must ensure their non-disclosure and employment agreements reflect local enforceability standards and that they understand how crossborder data transfers intersect with privacy and export control regimes such as the GDPR and U.S. export laws.” Jordan D. Grotzinger, Greenberg Traurig added that employee mobility rules are an often-overlooked factor. “In the U.S., employee mobility rules differ across states and evolve, which in turn affects trade secret protection. In some states, noncompete agreements are prohibited, which requires companies to place more emphasis on trade secret protection, since employees who know the employee’s confidential information can join a competitor. At the federal level, the FTC banned noncompetes last year, but that ban was enjoined and the federal prohibition on non-competes has focused on critical industries like healthcare, so that healthcare workers are not restricted from providing care. Israeli companies with business in the U.S. should be aware of whether their U.S. partners are able to enforce non-competes and, if not, ensure that those companies have other measures in place to protect trade secrets in which the Israeli companies have an interest.” Cybersecurity and Trade Secret Protection Converge Today, the line between data security and trade secret protection is increasingly blurred. Renov (Pillsbury) noted: “Trade secret protection is increasingly shaped by how courts interpret “reasonable measures” in a digital environment. Companies are expected to demonstrate formal, documented safeguards— confidentiality agreements, access controls, and internal policies—that can withstand judicial scrutiny. The convergence of cybersecurity and trade secret law has also become central: forensic data, access logs, and privacy compliance frameworks now form critical evidence in misappropriation cases. In the United States, the Defend Trade Secrets Act continues to extend federal

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