Economy Down. Litigation Up?

According to an article penned by Amanda Ernst in Portfolio Media, some experts are expecting the fading U.S. economy to have a direct impact on legal activity. Ernst’s article, “Trade Secret Litigation To Rise As Economy Dips,” suggests that a recession will lead to upswings in non-competition agreements, non-disclosure agreements and trade secret litigation. Whether or not this comes to pass remains to be seen; however, it is clear that prudent managers should take the necessary precautions to secure their intellectual property rights.

By recording and protecting intellectual property now, a company can help avoid costly litigation and the potential loss of valuable trade secrets down the road. Many proactive businesses pursue employee confidentiality agreements and ensure that employees understand their accountability in abiding by them. Although such agreements can lead to potential litigation, this is typically a lesser evil than remaining vulnerable to intellectual property piracy.

As the nation navigates difficult economic terrain, layoffs could become a short-term solution for some businesses looking to trim salary. After a layoff, it is not unusual for out-of-work employees to seek work with their former employer’s competitors. As a result, many businesses look to trade secret litigation as an important final measure in keeping competitors from accessing valuable intellectual property that, advertently or inadvertently, may accompany defecting employees. In unfortunate cases like these, even well crafted non-compete agreements may not be enough to curtail intellectual property infringement. Those seeking more information about non-compete agreements and trade secret litigation are encouraged to contact Boyle Fredrickson at 414-225-9755 or info@boylefred.com.