Determine when business assets may constitute intellectual property (IP), to ana

Question

Determine when business assets may constitute intellectual property (IP), to analyze when an IP theft has occurred and possible remedies for IP theft, and to assess the importance of protecting and enforcing IP rights in a business setting.

Scenario.

Futuretek sells high-tech computer chips and software to smartphone manufacturers worldwide. Futuretek maintains two software databases: one containing Futuretek's customer list with nonpublic contact information for key personnel, and the other containing customer purchasing trends. The information in the two databases is available for employees to view and use in connection with their job duties.

Dana is a computer programmer for Futuretek. Dana plans to run her own company one day and design and sell her own computer chips to smartphone companies. As an employee, she has access to the two databases containing Futuretek's key purchaser and purchasing trends information.

Dana decides to leave Futuretek and start her own computer chip business. Before she leaves, she makes a copy of the two databases on a portable hard drive. Dana uses the information to contact Futuretek's customers and offer them cheaper, but comparable, computer chips manufactured by Dana's new company, SmartChip.

Futuretek becomes aware of Dana's actions and asks you, the chief operations officer, for advice and recommendations on what to do.

Complete the following:

Determine whether Dana has taken Futuretek's intellectual property (IP), and if so, describe the type(s) of IP that was taken.

Explain any civil actions in tort or criminal actions that may be brought against Dana or SmartChip.

Assume Futuretek sues SmartChip, and Futuretek wins the lawsuit. Recommend ethical policies that SmartChip can put into place to prevent future legal claims and litigation against the company.

Recommend risk management procedures that Futuretek can implement to avoid or limit this type of activity from happening to the company in the future.

Explanation / Answer

The information copied by Dana ( customer information and purchase trends) does not come under any of the intellectual properties. However, this act amounts to the theft of company's confidential information. The employee can be charged with criminal offence of gaining unlawful access and use of company's personal data. He /she can be fined and be imprisoned as well.

Smartchip can adopt preventive measures to avoid potential lawsuits by offended parties. These may inlcude verification of the source of data used for the business purpose to avoid breach of confidentiality, clearing of any new product being introduced in the market of any intellectual property violations and copyrighting any intellectual properties created by the company resources to prevent them from being used unlawfully by someone else for personal gains.

Futuretek may include clauses in employee contracts to minimise the chances of these activities once employee leaves the company. It may also protect the confidential data of customers by latest data protection techniques to prevent theft by anyone for personal gain, deactivation of employee privileges immediately upon his /her leaving of the company to avoid unnecessary access and protecting intellectual properties by duly registering them with patents office to get legal protection in case of a dispute.

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