No trade is a stranger to litigation, however for the tech sector, it seems mental property (IP) and patent disputes, adopted by cybersecurity and knowledge safety points, are among the many high authorized issues that hold tech firm managers up at evening.
In line with the 17th Annual Litigation Trends Survey by Norton Rose Fulbright, which surveys tons of of in-house litigation leaders from international companies, labor and employment disputes are additionally excessive on the checklist for tech firms.
Startup groups, authorized counsel and different inside stakeholders trying to deal with these authorized challenges ought to contemplate three key components impacting the sector.
IP disputes: The highest litigation concern going through the sector
Know-how respondents had been extra prone to be involved about IP disputes than every other potential dispute supply, with 46% itemizing them among the many most regarding, in comparison with 16% throughout all industries.
On condition that the core perform of most know-how firms is to develop and market modern know-how and options, it’s unsurprising that tech firms listed IP disputes as having probably the most relevance and significance to them. Respondents cited the crucial nature of IP property to their core enterprise as the explanation why disputes had been such a priority.
The prices related to these disputes, significantly when defending towards accusations of patent infringement, had been high of thoughts for respondents. Defending towards IP disputes could be a drain on assets, significantly given the continued value and prevalence of disputes initiated by “patent trolls” — entities whose major enterprise is to acquire and implement patents towards know-how firms — far exceed the prices related to leveraging the patent to offer items and providers.
Many respondents reportedly are increasing their authorized groups. Methods embrace including further in-house authorized employees, participating outdoors counsel to concentrate on particular IP methods, increasing investigation and enforcement actions towards doubtlessly infringing exercise, enhancing the safety of firm patents and constructing a extra mature and strong contract drafting and overview course of for IP-related contracts.
Tech companies really feel uncovered to cybersecurity, knowledge safety disputes
Know-how respondents listed cybersecurity and knowledge safety points as the highest regarding dispute development, greater than every other trade — 71% reported they felt extra uncovered to cyber safety/knowledge safety disputes, in comparison with the earlier 12 months. They mentioned defending each their very own proprietary info and their buyer’s info was crucial, significantly in an more and more international market.
