Protecting Your Business from Employee Poaching and IP Theft

Growing a business in New York City is difficult. When a competitor emerges with the intent to poach one or more of your employees, it can have a doubly negative effect on your business. Not only would you have lost at least one employee, but there is also a risk that trade secrets or intellectual property central to your company’s operations may be lost 

Non-Solicitation Agreements Examined

It is a common practice in certain industries to include non-solicitation clauses in employment agreements. These clauses are intended to protect a company when an employee leaves the firm and attempts to take their former co-workers with them. A company’s employees are their most important investments. 

Significant sums of money and time are spent educating and training employees, especially in highly technical and skilled areas of the economy. Losing employees to poaching is a difficult situation for a business leader to face. It is adding insult to injury when those employees are lured away by a former employee of that same company. 

Enter the non-solicitation agreement. After signing a non-solicitation agreement, an employee of a New York City company is legally barred from trying to “recruit” their former coworkers to join them at their new employer. Keep in mind, however, that proving a solicitation case is challenging. Just as critical is being able to convince an employee that they are better off not jumping ship. As they say: an ounce of prevention is worth a pound of cure. 

A Company’s Intellectual Property is Valuable, Especially in New York City

The intellectual property of a New York City business is among its greatest assets. Software, product design, and even brand design are among the types of intellectual property highly valued by many NYC businesses. In short, anything conceived by a business and used in the marketplace can be classified as intellectual property. 

The fact that these assets are not physical makes it even easier for a poached employee to divulge secrets that should never have left the four walls of your business. Taking inventory of all potential sources of intellectual property, such as designs, internal business practices, brands, and inventions, should be organized as soon as possible. It may then be necessary to register any trademarks and designs to protect against IP infringement.

Employment Contracts Related to IP Protections

Many employment contracts contain language addressing who, the employer or the employee, owns the property created by the employee during their employment with the company. If an employment contract does not contain these IP assignment clauses, there is a substantial risk that the IP created for your business could be lost when the employee leaves.      

When Results Matter, Rely Upon the Knox Law Group

Contact New York City intellectual property defense lawyer, the Knox Law Group today. Our team of legal professionals serves clients throughout New York City with an eye toward preserving your rights as a business in all phases of employee poaching and intellectual property theft.