$1.8 Billion and Counting, The Cost of Trade Secret Theft

In this episode of the Reasonable Measures podcast, Tim and Chris return after a busy start to the year to dive into a landmark trade secret case: Phillips 66 v. Propel Fuels. They unpack how Propel secured a $604.9 million judgment—later tripled to a staggering $1.8 billion—due to willful and malicious trade secret misappropriation. The discussion highlights key risk mitigation strategies for companies navigating M&A due diligence and the evolving perception of trade secrets as a core intellectual property strategy. Tim and Chris also share insights from recent conferences and industry conversations, emphasizing how more organizations are proactively managing trade secret protection and governance.Takeaways:Massive trade secret verdicts are becoming more common. The Propel Fuels case reached nearly $2 billion, reinforcing the financial and legal consequences of misappropriation.Enhanced damages signal the importance of due diligence. Courts will punish companies that exploit trade secret information obtained during M&A discussions.Particularity matters. Propel protected itself by clearly defining 88 trade secrets, demonstrating best practices in trade secret identification and governance.Trade secret strategy is maturing. Companies are shifting from reactive protection to proactive trade secret management, recognizing it as a critical IP asset.Conferences reflect a changing IP landscape. Industry professionals are no longer debating whether to protect trade secrets but rather how to implement strong governance frameworks.M&A due diligence requires caution. Companies must assume deals may not close and plan accordingly to prevent intellectual property exposure.