What Employees Need to Know about IP Protection

[Audrey McNeil <audrey () riskbasedsecurity com>]

http://www.jdsupra.com/legalnews/what-employees-need-to-know-about-ip-74048/

Do your employees understand the importance of intellectual property (IP)
to your company and steps that they should be taking to protect it? Do they
recognize that exposing proprietary information, such as product
prototypes, confidential marketing strategies and customer lists, could be
considered trade secret theft? Or that by using a photo from the web for a
marketing piece could be expose the company to copyright infringement? Or
that a supplier using patented technology without consent could jeopardize
the viability of your products?

Employees and those with inside access to your IP – including supply chain,
joint venture and other partners – unwittingly expose a company to IP theft
and infringement. Here are common examples:

- A prototype or blueprint is left on a production table or taken from the
premises and viewed by competitors or media on a factory tour.
- An employee downloads confidential information before leaving to a new
job and shares it with his or her new employers.
- An inventor of a technology has access to the company’s patent database
after leaving the company.
- An employee makes copies of an article for distribution at a tradeshow
without gaining permission from the author.

Intellectual property flows through every organization. In fact, studies
have shown that 75% of the asset value of most companies is directly tied
to their intellectual property. Equally important, employees not respecting
the IP of others can put a company risk, for example, by downloading
illegal software with malware embedded in it, or using another company’s
trademark, design or patent without approval.

So, how and when should you talk with employees about intellectual
property? First, when they join your company. Employees should sign
confidentiality agreements and be made aware of their role in protecting
the IP or your company and others’ IP as well. You should also provide
ongoing reminders of their contractual obligations, both during the term of
employment and at exit interviews.

A few key points to impress upon employees:

- Do not share confidential information about former employers, products or
strategies.
- Assume that music, literature, photos or movies available on the Internet
are protected by copyright and its use is restricted.
- Never download unlicensed software. It not only violates others’
intellectual property rights, it can also contain malware that can give
others access to your system, enabling them to steal your company’s
intellectual property.
- If you would like to use others’ published material, you should first
check the terms of the subscription or service to avoid copyright
infringement.
-Don’t assume that product shapes or ornamental designs can be freely
copied. -Equally, if you are designing a product, assume that any new and
ornamental design can be entitled to intellectual property protection.
- As with other types of intellectual property, you should obtain a license
before using patented technology.
- Make sure confidential information is secure and not accessible by others
at all times.
- Before you share trade secrets such as customer lists, pricing, business
plans, product drawings, prototypes, and other internal business
information, make sure the person you are sharing it with has signed a
confidentiality agreement.

Taking a proactive approach to IP protection through employee
communications and training ensures that your employees are better equipped
to handle IP risks in their everyday roles and ultimately mitigate the
risks to your company.

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