Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Employment Law StrategistKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

Employers Beware

By Rick Bergstrom and Mark Temple

The modern employee is increasingly mobile. According to an article published in Forbes Magazine in 2007, 85% of American workers expected to be employed by a new company within the coming 12 months. Moreover, in these difficult economic times, many companies are taking advantage of the opportunity to poach top talent from their competitors. According to an article published in The Wall Street Journal in February 2010, 70% of companies surveyed were very ' or somewhat ' concerned about losing top talent due to cutbacks made during the recession. Employee mobility, coupled with the exceeding ease with which confidential and proprietary trade secret information can be stored and transported, create the perfect platform for trade secret theft by departing employees. Indeed, in a recent survey conducted by Ponemon Institute, 59% of the individuals surveyed confirmed that they kept company information after leaving their former employer. This occurred despite the fact that 79% of the individuals surveyed conceded that they were not permitted to take a company's sensitive information.

Trade secrets, such as methods of manufacturing, targeted areas of growth, and customer sales data are often the “crown jewels” of a business. They have the potential to allow companies to gain a competitive edge in the marketplace and must be adequately protected. Further, given the risks and realities of employee theft of trade secrets, businesses should implement specific practices and procedures designed to protect their confidential information, lest they risk protracted and costly litigation. In addition, the risks and likelihood of hiring “contaminated employees” (i.e., individuals who have stolen trade secrets from their former employers) are equally great, and companies that do not take appropriate proactive precautions in the hiring process can unintentionally find themselves embroiled in time consuming and expensive litigation.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.