Tuesday, 21 October 2008

Intellectual Property Theft

As a computer forensics company, we are seeing an increase in cases involving Intellectual Property Theft.

The expanding use of computer technology has made Intellectual Property Theft much harder for companies to police. Intellectual Property Theft normally occurs because an employee is leaving one company with the intention of joining a competitor, or they are leaving to set up their own company competing in a similar market to their current employer. Examples of Intellectual Property Theft that we have seen have include the theft of technical drawings and specifications, 'in house' software and client contact databases.

By stealing 'in house' software, or copies of technical drawings or specifications, a departing employee may gain a competitive advantage which they otherwise would not have had and it could save them or their new employer considerable time and money. This act is likely to be in breach of their employment contract and make them liable for prosecution. Consequently, when suspicion is aroused, examination of the computer media they use(d) could provide evidence of whether Intellectual Property Theft has occurred.

But what if an employee leaves and legitimately retains a 'client contact database'? Built over many years of hard work and through the fostering of good relations, the client contact database is the foundation of many companies. The client contact database does not normally have a financial value but its loss, to a competitor, can have a devastating effect. The proliferation of Social Networking Sites such as Bebo, FaceBook, Friends Reunited, LinkedIn and MySpace encourage people to make contacts both through their work and social life; some Social Networking Sites will periodically check a users address book and invite them to email all of their contacts to link to them.

Companies allowing employees access to social networking sites from their office computer are advised to ensure that their Internet Usage Policy clearly explains how Social Networking Sites can be used.

CMS Cameron McKenna Solicitors have an interesting case paper titled "Social networking sites and confidential information" which can be viewed at http://www.law-now.com/law-now/2008/socialjun2008.htm.

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