31 Geopolitical Dimension and the U.S. Nexus As global tensions and AI governance reshape how information flows, companies face new challenges in enforcement. Renov (Pillsbury) highlights: “Trade secret enforcement is increasingly influenced by geopolitical, regulatory, and technological forces. Heightened tensions between the United States and China are transforming trade secret protection into a matter of economic and national security, while export controls and data localization regimes complicate cross-border research, development, and data sharing. At the same time, emerging AI governance and transparency frameworks may require companies to disclose technical information that tests the boundaries of confidentiality, prompting courts and regulators to strike a delicate balance between oversight and innovation.” “International organizations such as WIPO and the OECD are also advancing efforts to harmonize trade secret standards, signaling a gradual move toward globally aligned enforcement principles. For Israeli innovators—particularly in AI, cybersecurity, and defense—these developments are especially significant. These sectors rely on a combination of proprietary data, algorithms, and engineering know-how that often sit at the intersection of trade secret and patent protection. Rather than assuming only one form of IP protection should be implemented, an effective strategy demands a holistic approach in which patents safeguard public-facing innovation while trade secrets protect the operational and technical knowledge that must remain confidential.” “Israeli companies expanding abroad should work closely with counsel to develop a coordinated intellectual property strategy that integrates trade secret practices into broader patent, licensing, and compliance frameworks. By uniting these elements under a single, forward-looking approach, Israeli innovators can ensure that their technological strengths are matched by robust legal protection across multiple jurisdictions.” Wolek (Fox Rothschild) agreed that the U.S. legal landscape remains particularly powerful. “Courts in the United States are increasingly asserting extraterritorial jurisdiction under laws such as the Defend Trade Secrets Act (DTSA). This trend exposes companies to greater liability for trade secret misappropriation—even when the alleged conduct occurs outside U.S. borders—so long as there is a demonstrable connection to U.S. commerce. As geopolitical tensions continue to rise, the use of extraterritorial enforcement is expected to expand.”
RkJQdWJsaXNoZXIy MjgzNzA=