Protecting Your Company’s Intellectual Property from Predation by Employees and Independent Contractors

David R. Bohm

By David R. Bohm



The success of a company in the technology sector is largely dependent upon its intellectual property, which, in turn, is derived from investment in human capital. It is the company’s employees (as used herein, the term “employee” will include independent contractors and contract employees) who develop software, invent new products or techniques, and generate other types of trade secrets and confidential information. Today, because employees are more mobile than ever, it is extremely important that businesses take precautions to keep their intellectual property from being utilized by an employee who goes to work for a competitor.

Patent and copyright law provide an entrepreneur some rights in relation to employees involved in developing patented or copyrighted material. Additionally, an entrepreneur has some common law rights in its trade secrets and confidential information. However, in order for a business to fully protect its interests in intellectual property developed and utilized by it, it is important to implement written agreements
that specifically address the rights of the business and its employees relative to such inventions and information.

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