@Would increase litigation not descrease it

> Firstly IP = Trademarks + Copyright + Patents and of those only Patents require secrecy and would need ESCROW

No. You missed off Trade Secrets - which is the only one that requires secrecy! Patents are publicly filed. (There are other kinds of "IP" too, e.g. masks for semiconductor manufacturing have special protection; the EU "database right", etc).

Software source code is usually protected both by copyright and as a trade secret (and sometimes by patents too). This is the sort of thing that they are likely to make available in this way.

> There is no gain to [The company being accused] from showing their trade secrets

If there's a court order, they may not get a choice about showing them. This way, at least they can stop their adversary from "accidentally" leaking the secrets onto the internet, or from ripping off their secrets and using them wholesale in their future products. (There are usually protections in the court order that are meant to prevent that sort of thing; but making it physically impossible has got to be better).