What To Know About Licensee Standing In Trade Secret Cases

Law360 (June 16, 2020, 4:27 PM EDT) -- Licensing of intellectual property has become a staple of commercial transactions. Frequently, a license agreement will include use of trade secrets, but not full ownership.

While the owner of a trade secret clearly has standing to sue for trade secret misappropriation, it is less clear whether an aggrieved licensee also has standing to sue. This question is an important consideration whenever trade secrets are captured in a license agreement.

The short answer is that trade secret licensees generally do have standing to sue for trade secret misappropriation, provided that the licensee meets the other requirements of standing.[1] At the state level,...

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