In-House Counsel Solutions Series: 2Q 2026
In-House Counsel Solutions
This is the 2Q installment of our In-House Counsel Solutions Series for our blog Ideate. The series is focused on identifying trending legal issues facing in-house counsel and providing practical solutions to these problems.
In this issue, we highlight recent developments and practical insights across trade secret protection, copyright ownership, and artificial intelligence. We examine how WD-40’s long-standing trade secret strategy offers lessons for businesses protecting confidential formulas and other valuable information, revisit the importance of written assignments and licenses in securing copyright ownership, and explore the growing risks attorneys face when using generative AI in legal practice. We also look at how trademark law may factor into the fight against AI-generated deepfakes and consider why clients and employees should be cautious about relying on public AI tools for legal advice.
How WD-40 Keeps Its Famous Secret Formula Protected
WD-40’s famous secret formula offers a clear example of how trade secret protection can sometimes provide greater long-term value than patent protection. While patents require public disclosure and eventually expire, trade secrets may last indefinitely if a company takes reasonable steps to preserve confidentiality. For in-house counsel, the WD-40 example underscores the importance of treating trade secret protection as an operational discipline, not just a legal designation. Strong confidentiality agreements, limited access, employee training, vendor controls, cybersecurity safeguards, exit procedures, and periodic audits can help prevent valuable information from being lost through internal mishandling or weak business practices.
A comprehensive discussion on WD-40’s secret formula protection can be found at our Ideate blog: How WD-40 Keeps Its Famous Secret Formula Protected by Darin M. Klemchuk, CEO, Member, and Founder.
Work Made For Hire Law Series: Part III - A Business Owners Guide to Assignments, Assignment Clauses, and Licenses
By Brian Casper
Written assignments and licenses play a critical role in helping businesses clearly establish copyright ownership and usage rights. Relying solely on the work-for-hire doctrine can create uncertainty because that doctrine is limited by specific legal requirements and may not apply in every situation. Assignments generally transfer full copyright ownership, while licenses usually grant more limited rights based on scope, duration, and exclusivity. For businesses with valuable creative assets, the article emphasizes the importance of clear written agreements and experienced legal guidance to avoid ownership disputes and correct any gaps in past copyright practices.
For a further discussion of assignments, assignment clauses, and licenses, visit our Ideate blog: Part III: A Business Owners Guide to Assignments, Assignment Clauses, and Licenses by Brian Casper, Member.
Balancing the Positive Impacts of Generative AI With The Very Real Risks to In-House and Outside Counsel
Generative AI offers meaningful benefits for legal departments and outside counsel, but its use also creates serious professional responsibility risks. Attorneys must consider confidentiality, data security, privilege, work product protection, candor to courts, informed consent, and supervisory duties before using AI tools in legal work. The article highlights the need for attorneys to understand both the capabilities and limitations of generative AI, especially when sensitive client or company information may be involved. Clear policies, training, vendor oversight, and regular review are essential as AI technology and related regulations continue to evolve.
A comprehensive discussion on the impacts of generative AI can be found at our Ideate blog: Balancing the Positive Impacts of Generative AI With The Very Real Risks to In-House and Outside Counsel by Mandi Phillips, Senior Attorney.
Can Taylor Swift Use Trademark Law to Help Fight Ai-Generated Deepfake Content?
By Rich Wynne
Taylor Swift’s recent trademark filings involving her voice and likeness raise important questions about whether federal trademark law can help combat AI-generated deepfakes. Although celebrities often use trademark law to protect names, logos, and brands, seeking protection for voice and image as sensory marks is a newer and more limited approach. The article explains that while these filings may offer some protection in certain commercial contexts, they are unlikely to serve as a broad solution for all unauthorized AI-generated uses of a person’s voice or likeness. The discussion also points to the larger legal gap left by the stalled NO FAKES Act and the inconsistent protections currently available under state law.
For a further discussion of AI deepfakes, visit our Ideate blog: Can Taylor Swift Use Trademark Law to Help Fight Ai-Generated Deepfake Content? by Rich Wynne, Senior Counsel.
Claude is not an Attorney: Why Clients Should Curb the Use of Artificial Intelligence for Legal Advice
By Mark Stachiw
Clients and employees should be cautious about turning to public AI tools for legal guidance, especially when sensitive facts or potential litigation are involved. Using United States v. Heppner as an example, the article explains that AI-generated legal queries and reports may not be protected by attorney-client privilege or the work product doctrine when created independently by a non-lawyer using a public AI platform. Public AI tools may also retain, review, or disclose user inputs, creating discoverable records that can later be used in litigation. The article encourages counsel to educate clients and employees on these risks and to distinguish public AI tools from secure legal research platforms or private AI systems.
A comprehensive discussion on AI in legal practice can be found at our Ideate blog: Claude is not an Attorney: Why Clients Should Curb the Use of Artificial Intelligence for Legal Advice by Mark Stachiw, Of Counsel.
Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.
This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.
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