Can You Enforce Trade Secrets in “Vibe-Coded” Systems? | Brownstein Hyatt Farber Schreck

AI-assisted development is rapidly changing the software development process, leading to substantial efficiency gains while raising new questions about ownership, confidentiality, and litigation risk.
The value of software may shift from identifiable code blocks to the methodologies used in AI-assisted workflows, which complicates enforcing trade secret rights.
AI-assisted development poses evidential challenges in determining whether proprietary technical knowledge and practices have been replicated without direct copying.
Employee mobility can risk the inadvertent transfer of proprietary knowledge through AI-assisted development techniques even without physical file transfers.
Contamination concerns arise from proprietary information being shared with external AI systems, impacting confidentiality and legal risks.
Companies should prioritize reevaluating trade secret policies, cybersecurity procedures, and confidentiality agreements to address AI-related workflows.
Proactive governance, including clearly defined AI usage rules, comprehensive employee mobility protocols, and detailed vendor agreements, is critical to mitigate AI-related risks.
Brownstein can help organizations navigate the evolving landscape by offering services in AI governance, litigation readiness, and regulatory compliance.

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