IPR protection is an essential part of SMEs’ business strategy and it often defines the success of the business. Thus, it is very important for the SMEs to be aware of all of the possibilities to protect their IP. In today’s blog post we are taking a closer look at IP protection with different contracts and agreements. More specifically, we are discussing Non-Disclosure Agreements and Employment Agreements, which can be used as preemptive measures to deter possible infringers from violating SMEs’ IP rights.
There are many ways in which intellectual property (IP) owners should protect their valuable assets. Perhaps the most apparent ways are to register the IP in relevant jurisdictions and then enforce that IP right against infringing third parties. There is, however, a very practical and pre-emptive way of protecting IP on a commercial level. SMEs should also think about protecting their IP with different contracts like non-disclosure agreements, memorandums of understanding and employment contracts.
A large proportion of the value of business is derived from IP due to its presence in SMEs’ everyday business. IP can create value and revenue in a number of ways: it can be sold or licensed, contributed as capital in a joint venture, offered to enter into strategic alliances, integrated with a current business, or used to create a new business. The people and companies that SMEs do business with, and therefore contract with, will often use SME’s IP to varying degrees. When doing business that involves IP, there are two key points to bear in mind: always use written contracts wherever possible and ensure that, where relevant, that company’s IP is covered in those agreements.
Non-Disclosure Agreements (NDA) and Confidentiality Agreements
Ensuring non-disclosure and confidentiality is important for any type of deal—not only for technology, IP and trade secret matters which may be the core part of the deal, but also for business strategies, new product ideas and financial and accounting information, all of which are likely to be useful in deciding whether a deal will go forward. Non-disclosure and confidentiality undertakings are enforceable in South-East Asia, provided that they are reasonable and fair and do not violate the public interest. Normal Western-style confidentiality undertakings setting out the agreed terms of what constitutes the “confidential information” and what does not, acknowledgement of proprietary interest in the confidential information and penalties for unauthorized disclosure, etc., are also common in Southeast Asia. Continue reading “Using Contracts to Protect your IP in South-East Asia: NDAs and Employment Contracts” »