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Perspectives

| 2 minute read

Texas Business Court Steps into Trade Secret Litigation

In 2025, the Texas Business Court was granted expanded jurisdiction over trade secret, intellectual property, and Texas Uniform Trade Secrets Act (TUTSA) disputes through an amendment to Tex. Gov't Code Ann. § 25A.004. This jurisdiction applies where the amount in controversy exceeds $5 million.

The amendment reflects a broader effort to position the Business Court as a specialized forum for complex, high-value commercial disputes, particularly those involving intangible assets such as proprietary data, software, and confidential business information. Since the amendments took effect, the court has begun developing a body of case law clarifying both the scope of its jurisdiction and the substantive contours of trade secret–related claims.

In Alamo Title Co. v. WFG Nat'l Title Co. of Tex., LLC, for instance, the Fourth Division of the Business Court reaffirmed the Fifteenth Court of Appeals’ conclusion that the jurisdiction grant in § 25A.004(d) allows the Business Court to exercise jurisdiction over the whole action, not just itemized claims related to trade secrets or intellectual property. This holding is particularly important because it confirms that the Business Court may adjudicate hybrid disputes—cases in which trade secret or IP issues are intertwined with other claims.

The Business Court has also begun to address substantive issues arising under TUTSA and related doctrines. In Unimacts Glob., LLC v. Ayr Energy Inc, the Eleventh Division took up the question of whether certain claims were preempted by TUTSA, and in Galderma Labs., L.P. v. Brenner, the Eighth Division looked at a claim related to a violation of the Texas Uniform Trade Secrets Act. 

The court has also addressed ownership disputes involving trade secrets—a critical issue in joint ventures and collaborative business relationships. In Mesquite Energy, Inc. v. Sanchez Oil & Gas Corp., the court considered the ownership of trade secrets between two parties and concluded that trade secrets were “developed through the parties' joint efforts, and neither party proved exclusive ownership.”

Key Takeaways

  • The Texas Business Court is emerging as an attractive venue for sophisticated business disputes. Cases involving trade secrets and intellectual property are particularly well-positioned to benefit from the court’s specialized focus and business-oriented approach.
  • Early decisions signal a commitment to both expertise and efficiency. Although the court is still in its formative stages, it has demonstrated a willingness to devote focused attention to complex commercial disputes while moving cases toward resolution on an accelerated timeline.
  • Jurisdictional strategy matters from day one. Companies and their counsel should assess at the outset whether trade secret or IP claims may provide a pathway into the Business Court and consider how those claims fit within the broader dispute.
  • Thoughtful structuring of pleadings will help to capture the full dispute within the Business Court jurisdiction.
  • Expect early scrutiny of threshold issues. Litigants should be prepared to address jurisdictional questions and defenses such as TUTSA preemption at the beginning of a case, as these issues are likely to play a significant role in shaping the court’s developing jurisprudence.
  • Businesses should monitor the court’s evolving approach. As the Texas Business Court continues to define the procedural and substantive contours of trade secret and IP disputes, its early rulings offer valuable guidance for companies evaluating litigation strategy and forum selection.
“The Texas Uniform Trade Secrets Act defines trade secrets as any information that ‘the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret’ and which derives independent economic value from not being known or readily ascertainable by those who could benefit economically from its ‘disclosure or use of the information.’”

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trials, business organizations