Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% increase in one year. The rise in demand for electric vehicles ("EVs") has prompted many companies to enter the EV battery space. Given the rapid development of, and technological advances required to, create new EVs, innovators in this space are increasingly encountering trade secret theft. Trade secret litigation in the EV sector has, accordingly, increased in recent years. In March, a leading EV manufacture filed suit against two former employees who allegedly converted battery assembly trade secrets to a newly-created Chinese company.
The unsealed private complaint was filed in the
The complaint further alleges that the defendants conspired to create their own company selling battery assembly products in
Trade secret litigation, like this one, in the EV space has increased in recent years as companies vie to protect their confidential information. In 2020,
Trade secrets provide a valuable opportunity to protect important intellectual property, while also maintaining their confidentiality. Car battery technology, proprietary software for vehicle management systems, and EV production techniques may all incorporate trade secrets that a company would like to protect. By protecting these important, commercially valuable assets, companies can maintain their competitive edge in this growing industry.
As the EV market continues to explode, this trend of trade secret litigation is likely to continue. Competitors in the EV industry are seeking trade secret protection for their commercially valuable, and confidential, business information. Companies already in this space, or those trying to break into the EV market, should be aware of the likelihood of trade secret litigation. Additionally, companies should protect their own trade secrets by identifying them, implementing policies across the company to protect them, and ensuring compliance with those policies. This type of intellectual property protection can be done in conjunction with other intellectual property protections, such as obtaining patents on related technology. Enforcing intellectual property rights by protecting trade secrets is a strategic tool to protecting highly valuable business information and practices in the fast-paced EV industry.
The Critical Role Of Trade Secrets In The Booming EV Industry
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