In the IP realm, failed ideas and inventions – known as “negative information” – can be economically valuable, as anyone starting with knowledge of past failures can avoid spending time and resources on attempts that are ultimately going to be unsuccessful. While the market does not price negative information in the same way as successful ideas and inventions, the need to value negative information can arise in trade secret-related disputes.

In a recent article published in Business Law Today, Brattle consultants explore techniques to overcome the challenges of determining the value of negative information and show how negative information can inform allegations of trade secret theft in intellectual property (IP) disputes. The authors explore trends in recent US trade secret cases, provide an overview of typical approaches to IP valuation, and provide a framework for conducting the necessary individualized valuation of negative information.

The article, “Trade Secret Valuation in IP Disputes: Economics of Negative Information,” is authored by Principal Laurence Freed, Senior Associate Dr. Animesh Giri, and Associate Jacob Pastor.

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