Business in Manhattan’s tech sector takes place under the protection of various forms of intellectual property (IP) rights, such as patents, copyrights, trademarks, and trade secrets. Furthermore, companies and individuals working in the tech sector may enter contractual agreements to govern the use of IP. However, given the competitive nature of business in this international business capital, legal disputes frequently arise regarding these IP rights.
Common Intellectual Property Disputes in Tech
Common examples of IP disputes in the tech sector in Manhattan include:
- Patent disputes: Patent disputes in the tech sector may include infringement claims, licensing disputes, and disputes over the purported assignment of invention rights.
- Copyright issues: In tech, copyright can protect computer code, leading to potential disputes when parties copy large portions of web, software, or hardware code wholesale.
- Trademark conflicts: Competing businesses may have trademark disputes when one party uses a confusingly similar trademark or if a former licensee continues to use a trademark after the termination of a license agreement.
- Trade secret misappropriation: Companies working “under the radar” in the tech industry may protect some of their technology through trade secrets, potentially leading to misappropriation claims when other parties who learn of the technology take it for themselves.
Contractual Disputes in Manhattan’s Tech Industry
Contractual disputes involving intellectual property that frequently arise in Manhattan’s tech sector include:
- Breaches of non-disclosure agreements: Companies that disclose IP to third parties may do so under the protection of an NDA. Those companies may have contract claims when parties breach their obligations.
- Breaches of licensing agreements: An IP holder may bring a claim against a licensee for breaching the licensing agreement, such as by using the IP beyond the scope allowed by the license.
- Employment agreements/invention assignment agreements: Businesses and employees may have IP-related contractual disputes arising from employees’ breach of their employment agreement, especially IP/invention assignment clauses included in employment agreements.
- Supplier/vendor disputes: Companies may pursue contractual claims against suppliers or vendors who misappropriate the company’s IP to develop an identical competing product.
- Partnership disputes: A business may have a legal claim when one of its partners misappropriates the company’s intellectual property to start a competing business.
Legal Strategies for Resolving Disputes
Manhattan’s tech sector businesses have various avenues for resolving an IP or contractual dispute. These options include:
- Negotiation: Parties may informally resolve a dispute through settlement negotiations. Informal negotiations can preserve a working relationship or allow parties to settle a dispute without expending substantial time and money.
- Mediation: Mediation involves a formal negotiation facilitated by a neutral third party – called a mediator – whose role includes helping the parties understand each other’s cases and suggesting settlement solutions.
- Arbitration: Parties may agree to pursue arbitration instead of traditional litigation. Arbitration offers a more cost-effective trial-like alternative, where parties present their cases to one or more neutral parties called arbitrators who issue binding decisions.
- Court litigation: Parties may take an IP dispute to court to have a jury or judge decide the case.
Steps your company can take to help resolve an IP dispute include:
- Obtain registered protection for your intellectual property, including patents and trademarks from the USPTO and copyrights from the U.S. Copyright Office.
- Implement protective measures for your company’s IP, especially trade secrets, including NDAs, locking away physical files, and encrypting digital files.
- Develop thorough IP contracts that adequately protect your company’s rights and interests.
- Work with an experienced business attorney who can assess your company’s risks and suggest tailored legal solutions.
Contact Our Firm Today for Help with Your IP Dispute
If you find yourself in an IP or contractual dispute as a business in Manhattan’s tech sector, an experienced business litigation attorney can help you defend your rights and interests. Contact Levy Goldenberg LLP today for a confidential consultation to discuss your legal options with one of our IP rights attorneys in Manhattan.
