I didn't say it would be a huge risk, I just disagree that any of those features of the law cover what copyright does. They don't. If a trade secret is ever revealed, all protection is lost. Breach of contract is very complex compared to an infringement claim and would have to be negotiated. As a customer, why would I want to indemnify a software supplier? If there's no indemnity, it's not going to get anyone very far. CFAA basically requires that something get hacked so it's not going to cover the vast majority of scenarios...

>I really don't understand where copyright on the code itself is necessary to protect these business models, and hopefully you can help fill the gaps.

Well, did you ever try to understand? It's so exhausting coming to these threads when people are just making assumptions about how the law works without any regards to what actually happens, and then suggesting policy changes in response.

Here's a scenario - disgruntled ex-employee leaks the code. Now it's free for anyone to use because there is nothing you can do to stop anyone from using it because you have no rights in the code since the trade secret is broken. You can sue the employee. They are probably judgment proof, wont have a lot of money anyway, and will still not stop a competitor from spinning up the same exact thing.

Trade secret was your suggestion by the way... So do, you actually know how trade secrets work, or you just making things up??