Insights Litigation in the digital world; from The Lawyers’ viewpoint!

Protecting and exploiting your IP rights is crucial to the success of any business; and managing the risk of infringing others’ rights is crucial to avoiding significant damage to the financial and operational health of any business. Prevalent in the Tech world at the moment is a spate of Patent conflicts, partly perpetrated by Patent Trolls.  Large and small companies can be affected: Apple and Lodsys are fighting – dragging in the minnow developer; and Yahoo and Facebook are claiming and counter claiming.  Patents and IP in general are big business and can create a significant time bomb risk. You can argue forever about the rights and wrongs, and ethics and legality of the Troll or other patent owner’s behaviour, and about the validity of patents filed years ago, that now seem obvious and ridiculous in the current internet and tech dependant world.  However the complexity and cost of defending claims, will often make an economic settlement (not very economic for a start-up!) the obvious or only choice – hence the Trolls’ livelihood and business model. This risk and pain could indeed spread to any new platforms and devices and business models, as internet connected devices and enhanced functionality spreads to allow the expression of existing technologies on new platforms and devices. How does a tech company (ie any company!) dealing in IP and ideas protect itself? Basic tips:

  • Do your due diligence when you are building new solutions: know what other technology is out there and consider how similar your solution is – could it be overlapping with someone else’s IP?
  • Do the same when licensing in technology or IP: conduct practical due diligence as well as getting good contractual warranties and indemnities.
  • Protect the IP you create: ensure you contract properly with contractors and developers, and secure the relevant rights.
  • Take care when licensing your technology: know the value of your IP, construct the right commercial deal, and don’t accidently give away too many rights.

For more information, contact  David Deakin, Consultant

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