Guides · Trade Secret Litigation
Where Trade Secret Cases Are Heard
A Texas trade secret case can be heard in a state district court, the Texas Business Court, a federal district court, an arbitration, or, when imports are involved, the International Trade Commission.
· Law checked through October 20, 2026
In Short
A Texas trade secret case can be heard in a state district court, the Texas Business Court, a federal district court, an arbitration, or, when imports are involved, the International Trade Commission. The choice affects speed, procedure, sealing, the judge's experience with complex business cases, and where an appeal goes. An arbitration clause or a forum-selection clause in an employment or commercial agreement may make the choice for the parties.
Common situations.
- A Houston company wants an injunction against a former employee who lives in Austin.
- A plaintiff files in state court, and the defendant wants to move the case to federal court or the Business Court.
- The employee's agreement requires arbitration, but the employer needs emergency relief now.
- A foreign competitor is importing products made with stolen process information.
The options.
| Forum | When it is available | Points to weigh |
|---|---|---|
| Texas district court | Any TUTSA or related state-law claim | Familiar procedures; jury from the county; temporary injunction appeals go to the regional court of appeals |
| Texas Business Court | Actions relating to trade secrets where the amount in controversy exceeds $5 million (Tex. Gov't Code § 25A.004(d)(5)), filed there or removed from district court | Specialized judges who write opinions; appeals to the Fifteenth Court of Appeals (§ 25A.007(a)) |
| Federal district court | DTSA claims (28 U.S.C. § 1331), with related TUTSA claims as supplemental claims (§ 1367); or TUTSA claims between parties of diverse citizenship (§ 1332) | Federal discovery and sealing rules; Rule 65 injunctions; the DTSA's ex parte seizure remedy; appeals to the Fifth Circuit |
| Arbitration | When the parties agreed to arbitrate | Confidential proceedings; limited discovery and appeal; emergency relief from a court or an emergency arbitrator |
| ITC | Imports of products made using misappropriated trade secrets (19 U.S.C. § 1337) | Exclusion orders, not damages; reaches misappropriation that occurred abroad (TianRui Grp. Co. v. Int'l Trade Comm'n, 661 F.3d 1322 (Fed. Cir. 2011)) |
State court venue.
Venue in Texas generally lies in the county where a substantial part of the events occurred or where the defendant resides (Tex. Civ. Prac. & Rem. Code § 15.002). A special rule applies to injunction suits: when the relief sought is purely or primarily injunctive, suit against a Texas resident must be brought in the county of the defendant's domicile (§ 65.023(a); In re Continental Airlines, Inc., 988 S.W.2d 733 (Tex. 1998)). Where the injunction is ancillary to a claim for damages, the general venue rules apply (In re Fox River Real Estate Holdings, Inc., No. 18-0913 (Tex. Jan. 31, 2020)). Plaintiffs seeking only to enjoin a former employee should plan for this rule.
The Texas Business Court.
- Jurisdiction. Since September 1, 2025, the Business Court may hear actions arising from or relating to trade secrets, and certain technology and life-science IP disputes, where the amount in controversy exceeds $5 million, not counting interest, exemplary damages, penalties, fees, and costs (Tex. Gov't Code § 25A.004(d)(5)).
- Divisions. Five divisions are operating: the First (Dallas), Third (Austin), Fourth (San Antonio), Eighth (Fort Worth), and Eleventh (Houston). Each has two judges.
- Appeals. Appeals go to the Fifteenth Court of Appeals, which sits in Austin and hears appeals statewide from the Business Court (Tex. Gov't Code § 25A.007(a)).
- Track record. The Business Court's first jury trial in its Austin division was a trade secret case, ES3 Minerals, LLC v. Kreines, No. 24-BC03B-0005, which ended in a March 2026 verdict and a judgment of about $44.4 million in actual damages plus exemplary damages and a permanent injunction.
- Sealing. The court's local rules tell parties not to file unredacted trade secrets (Tex. Bus. Ct. Local R. 9, effective Apr. 1, 2026). See Keeping Secrets Secret During the Case.
Federal court.
A DTSA claim gives federal courts jurisdiction, and related TUTSA and contract claims can come along as supplemental claims. A defendant sued in state court on a DTSA claim may remove the case. Federal court offers the DTSA seizure remedy, but federal judges apply a stricter standard to sealing court records, and Texas procedures such as the § 134A.0065 sealing statute do not apply there.
Arbitration and emergency relief.
Many employment and commercial agreements require arbitration. Courts enforce those clauses under the Federal Arbitration Act (9 U.S.C. §§ 2-4) and the Texas Arbitration Act (Tex. Civ. Prac. & Rem. Code ch. 171). Even when the merits must be arbitrated, a party may need emergency relief to preserve the status quo. Options include a court order in aid of arbitration, where the agreement or governing law allows it, or an emergency arbitrator under the arbitration provider's rules. Check the agreement for carve-outs that allow injunction suits in court.
Sources.
- Tex. Gov't Code §§ 25A.004(d)(5), 25A.007(a).
- Tex. Civ. Prac. & Rem. Code §§ 15.002, 65.023; ch. 171.
- 28 U.S.C. §§ 1331, 1332, 1367, 1441.
- 9 U.S.C. §§ 2-4.
- 19 U.S.C. § 1337.
- Tex. Bus. Ct. Local R. 9 (effective Apr. 1, 2026).
- In re Continental Airlines, Inc., 988 S.W.2d 733 (Tex. 1998).
- In re Fox River Real Estate Holdings, Inc., No. 18-0913 (Tex. Jan. 31, 2020).
- TianRui Grp. Co. v. Int'l Trade Comm'n, 661 F.3d 1322 (Fed. Cir. 2011).
- ES3 Minerals, LLC v. Kreines, No. 24-BC03B-0005 (Tex. Bus. Ct., 3d Div.).
- Office of the Governor, press release reappointing Business Court judges (July 29, 2026).
This guide is general information, not legal advice. Law checked through October 20, 2026. See the Disclaimer.