Why the Prohibition of Non-Compete Agreements Does Not Lead to an Increase in Trade Secret Litigation
Can you keep a secret? Banning noncompetes does not increase trade secret litigation
GPT Abstract Summary
This study examined the conventional wisdom that banning non-compete agreements (NCA) increases labor mobility and thus trade secret infringement litigation. By analyzing state-level data on NCA bans for high-wage and low-wage workers and trade secret litigation data from Westlaw and Courthouse News Service, it was found that, in the long term, trade secret lawsuits decrease. This decline is not due to decreases in cases where NCA and trade secret claims are simultaneously filed or weakened reliance on trade secrets; companies rather rely more on trade secret protections after NCA prohibitions. Furthermore, the introduction of the inevitable disclosure doctrine leads to increases in both NCA and trade secret litigation, suggesting the two protection measures are complementary.
Key Points
- Although NCA bans increased worker mobility, trade secret litigation cases decreased in the long term.
- The reduction in trade secret litigation is not due to a decrease in combined NCA and trade secret claims or lowered reliance on trade secret protection.
- The introduction of the inevitable disclosure doctrine increases both NCA and trade secret litigation, demonstrating the complementary roles of the two systems.
Scope and Limitations of the Summary
This English translation is based on a Korean summary generated from the source abstract. It is not a review of the full paper. Consult the original for detailed methods, figures and the scope of the conclusions.
This summary is based only on the abstract content; detailed statistical methods, analytical processes, and policy contexts used in the study cannot be confirmed in detail.
This summary does not represent the official views of Professor Haksoo Ko or the Center for Law & Economics at Seoul National University.
Summary Basis: Original Abstract · Model: gpt-4.1-mini · Generated: 2026. 10. 02. 01:59 (Korean Standard Time)