IP and cybersecurity disputes – major legal issues for technology companies – TechCrunch
No industry is alien to litigation, but for the technology sector, it seems intellectual property (IP) and patent disputes, followed by cybersecurity and data protection issues are some of the major legal issues that prevent technology company executives from sleeping through the night.
According to 17th An annual study of Norton Rose Fulbright’s litigation trendssurveying hundreds of domestic litigation leaders from global corporations, labor and labor disputes also rank first on the list of technology companies.
Startup teams, legal advisers and other internal stakeholders seeking to address these legal issues need to consider three key factors affecting the sector.
Intellectual property disputes: the main problem facing the sector
Respondents on technology were more concerned about IP disputes than any other potential source of controversy: 46% called them one of the most troubling, compared to 16% in all areas.
Given that the primary function of most technology companies is to develop and sell innovative technologies and solutions, it is not surprising that technology companies have named IP disputes as the most relevant and important to them. Respondents cited the critical nature of IP assets for their core business as the reason why the controversy is of such concern.
The costs associated with these disputes, especially in defending against allegations of patent infringement, were major for respondents. Protection against intellectual property disputes can be resource-intensive, especially given the long-term costs and prevalence of disputes initiated by “patent trolls” – entities whose main business is to obtain and enforce patents against technology companies – far outweigh the costs. using a patent. provide goods and services.
It is reported that many respondents are expanding their legal team. Strategies include adding additional full-time legal staff, engaging outside attorneys to focus on specific IP strategies, expanding investigations and law enforcement against potentially infringing activities, enhancing company patent protection, and creating a more sustainable and robust drafting and reviewing process. contracts.
Technical firms feel exposed to controversy over cybersecurity and data protection
Respondents on technology listed cybersecurity and data protection issues as more controversial than in any other industry – 71% said they felt more prone to disputes with cybersecurity and data protection than in the previous 12 months. They said protecting both their own information and that of their customers is crucial, especially in an increasingly global marketplace.