The LDI Approach to Source Code

In 2011, Marc Andreessen, cofounder and general partner of Andreessen Horowitz, published an op-ed in the Wall Street Journal titled “Why Software is Eating the World.” The headline—once a popular catchphrase in business literature—is today a truism describing how technology companies have disrupted and transformed virtually every segment of industry.

Andreessen’s aphorism does not apply to technology companies alone. It also speaks to how software permeates almost every aspect of business, how lines of code supplement traditional industries, and have become integrated into every step of the corporate value chain.

Put simply, code today is found anywhere and everywhere. From a legal perspective, it can often hold evidentiary importance, reveal trade secrets, carry intellectual property, and become a legal flashpoint across a host of different situations.

When Source Code Becomes the Bone of Legal Contention

Source code is the human-readable set of instructions written in a programming language that defines how a software program operates. It serves as the original blueprint that developers create and edit before the program is translated (via a compiler or interpreter) into machine code that a computer can execute.

Often referred to as a company’s “crown jewels,” source code specifics and integrity are often at issue, or even form the basis of, intellectual property disputes and litigation.

Consider, for example, how federal prosecutors recently charged a quant trader with stealing trade secrets after he allegedly stole source code from a Chicago-based quantitative trading firm. In its 2023 lawsuit against the trader, which preceded his indictment by the Southern District of New York, the firm accused the defendant of stealing source code underlying its proprietary automated trading strategies that generate billions of dollars in profits. The firm alleged that it spent more than $1 billion developing blocks of source code that are now at the center of the lawsuit.

The defendant’s legal team contends that the source code was not proprietary information. “Algorithmic trading code is not static like the secret recipe for Coca-Cola; rather, like an open can of Coke, it quickly goes stale,” his defense attorney reportedly wrote in a court filing.

In another example, a patent lawyer could be facing sanctions after reportedly violating a protective order on Netflix’ source code by sharing it with outside parties. Netflix has sought penalties against the lawyer after learning that he shared information disclosed during the discovery process that was marked “attorneys eyes only” with outside parties.

Facilitating Code Review in a Secure and Defensible Way

In litigation, investigations, or regulatory reviews, source code may need to be produced, examined, or preserved as part of the factual record. When that happens, it must be managed with heightened care.

If mishandled—whether through unauthorized access, accidental disclosure, or lax security protocols—it can lead to significant reputational, financial, and legal harm. The risk is compounded by the fact that source code repositories often include embedded credentials, API keys, or access tokens, which can create downstream cybersecurity vulnerabilities if exposed.

In these types of situations, internal experts—including those from opposing parties—may require practical means for reviewing source code so they can report findings, outcomes, and discrepancies. The process continually requires heightened discretion and enhanced technical and organizational measures for security.

Companies will therefore turn to Legal Data Intelligence practitioners to help create and manage a secure source code review system. Relying on experience in discovery, technology, and data protection, LDI practitioners can help construct a secure environment to facilitate review, analysis, and reporting of highly sensitive source code.

To support legal professionals in ensuring that source code is fully protected during review, analysis, and reporting, we introduced a new use case into the Legal Data Intelligence model: Source Code. The new use case sits under the Data Protection Compliance category.

LDI practitioners can now access and download the Source Code use case on our website. The workflow was jointly created by founding members Briordy Meyers (Privacy Director, Capital One), Sarah Bennington (Senior Legal Counsel, Qualcomm), along with LDI Architects Joe Bartolo, Ryan Costello, Chris Haley, Michael C. Kearney, Rachel McAdams, George Phillips, Lisa Ripley, Rob Robinson, and Michael Sarlo.