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Law Firm Warns Against Hiring Away of Employees to Garner Corporate Secrets

As displaced employees move onto new jobs, higher pay, etc. the hiring company could be liable for infringement of intellectual property rights and trade secrets. Find out what every company, HR Manager, and job candidate needs to know to avoid the pitfalls of passing on proprietary information.

Skokie, IL, November 6, 2003 — In these days of economic downturn, layoffs, and rising unemployment, it seems counterintuitive to discuss the need for companies to protect themselves against the loss of intellectual property entrusted to employees. However, it is in these times that this kind of diligence is critical. As displaced employees move onto new jobs, higher pay, etc. the hiring company could be liable for infringement of intellectual property rights and “know-how”.
According to Boris Parad, a patent attorney and specialist in intellectual property law for 25 years, “The employee’s knowledge of doing things the right way and knowledge of “blind alleys” in product development can be legally used by the new employee. However, the disclosure of a particular design, trade secret, or specific product which became known to the employee during his/her employment provides an unfair advantage to the subsequent employer; and can be subject to penalties.”

While this can be an inadvertent consequence of hiring, it can also be a deliberate act on the part of some employers who advertently hire employees away with the intent to gain knowledge of a particular project, product, or practice. Parad warns that this is deemed to be stealing trade secrets, even if there is no direct evidence that confidential information was extracted from such employees. It is rather difficult to prove such intent since employees are free to change jobs; nevertheless, it is incumbent upon the hiring employer to honor agreements of confidentiality, non-disclosure, or non-compete for the duration required. “Making this part of your interview screening process could save you an expensive lesson in the short run. It should not impact the decision to hire the candidate; it should be used as an understanding of mutual respect without compromising either party.”
Practical tips on how to safeguard proprietary information can be found in Parad’s book, Commercial Espionage: 79 Ways Competitors Can Get Any Business Secrets available on www.denvica.com.

Boris Parad is a principal at Parad Law Offices, P.C. He has litigated cases in both federal and state courts in Illinois, Colorado, Michigan, and Wisconsin; and has argued cases in the Illinois appellate courts as well. The firm consults U.S. companies to help educate and protect their corporate interests, intellectual assets and confidential information. Parad firm accepts damage compensation matters on a contingency fee basis.
Parad’s background and firm’s services are described at www.paradfirm.com, or