Commentary on Sharing Trade Secrets with Other Organizations

James P. Flynn, Managing Director of the Firm and Member in the Litigation and Employment, Labor & Workforce Management practices, in the firm’s Newark office, was a contributing editor of a peer-reviewed article in The Sedona Conference Journal, Volume 2026, titled “Commentary on Sharing Trade Secrets with Other Organizations (PDF).”

For complimentary access to the article, visit the Sedona Conference website.

Following is a summary:

This article provides detailed guidance on the processes, challenges, and best practices for sharing trade secrets between organizations. It emphasizes the importance of balancing the benefits of sharing trade secrets, such as fostering business opportunities and regulatory compliance, with the risks of misappropriation or loss of confidentiality. The document outlines key tools for protecting trade secrets, including contractual measures like non-disclosure agreements (NDAs), physical safeguards such as secure storage and restricted access, and technological protections like encryption and activity tracking. It discusses considerations before sharing, such as identifying and categorizing trade secrets and establishing protocols for access. During the sharing process, it recommends using secure data rooms and monitoring access to ensure compliance. When a relationship ends, the document stresses the importance of returning or destroying trade secrets, confirming compliance through audits, and addressing risks of misappropriation, particularly if the receiving party or its personnel work with competitors. For international trade secret sharing, it highlights the complexities of varying legal frameworks and the need for proper documentation and legal provisions. The commentary also includes an appendix with a checklist for both disclosing and receiving parties to ensure proper handling of trade secrets at every stage. Overall, this article aims to provide practical, non-mandatory recommendations for protecting trade secrets while fostering collaboration and innovation, and it addresses the evolving role of artificial intelligence in trade secret management.

The same edition of The Sedona Conference Journal also featured an article co-authored by Eleanor Chung and Stuart Gerson of Epstein Becker Green, "Artificial Intelligence in Healthcare: A Survey of Federal and State Laws."