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April 29, 2011

Duplication of Your Business by Your Former Employees

Informed Counsel

In our experience, many clients have regretted trusting their employees—and in some cases, their business partners—with their intellectual property rights. When a business becomes successful, it runs the risk of some employees or business partners believing that they could set up a similar business and apply key insights gleaned from the company’s IPR to attract the same customers and gain greater profits and market share. When the fortunes of a business decline, a company may have to watch out for business partners or employees deciding to jump ship and setting out to utilize the IPR in what they hope will be a more effective fashion. As the examples in this article indicate, precautions should be taken from the outset to avoid either scenario.

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