Tech is the foundation of most (if not all) industries today. Whether it’s software development, applications or digital payment methods, tech has integrated itself into almost every market sector. But alongside the tech innovation comes the increasing challenge of protecting one’s invention or intellectual property (IP). The rise of innovations has also caused a parallel rise in IP infringement or tech infringement. This in turn pushes tech companies to take proactive measures to protect their inventions in a hyper-competitive market.
In simple words, IP infringement is when someone steals, copies, alters, or exploits your innovations and ideas to build their reputation and business, without your consent.
One such example is the years-long dispute between Google and Sonos. In 2020, Sonos sued Google, claiming that Google had infringed upon five of its patents related to smart speaker technology. Eventually, last year, in May, the US federal jury ruled in favor of Sonos and ordered Google to pay $32.5 million in damages.
This is just one instance of tech infringement, among many others. In this blog, we will discuss some of the intellectual property rights (IPRs) in the tech industry and how to protect IP and navigate tech infringement.
Key IPRs in the Tech Industry
IPRs are legal rights that protect your innovations or products and help maintain a healthy competitive edge. In our previous blog, we already discussed some of the patent laws in technology.
Today, let us look at some more legal rights that offer protection for tech businesses:
Copyrights
Copyrights protect IP—the original source code of the software but are often overlooked. Whether it’s a mobile app or an enterprise software suite, developers would agree that protecting their hard work and original codebase is important. You may register your software code copyrights with the U.S. Copyright Office for legal benefits during IP infringement lawsuits.
Here’s another example: in April 2024, eight US newspapers sued OpenAI and Microsoft for copyright infringement and claimed that these tech giants have been using news articles to train AI chatbots. Now imagine if you were in this position and someone else was building their own business by using your curated articles as training codes for AI models without permission—that’s a violation of rights.
This is where you’d want to seek professional help to tackle such legal disputes. Leading IP consulting firms like Lumenci help in litigation—from research, witness and trial preparation to monetization of your assets, the legal team will assist you when you need it.
Database Rights
Database rights are essential to protect your valuable business data sets. These legal rights ensure that no one extracts or reuses your structured data set without consent. The rights are currently recognized in Russia, the UK, and the European Union. The US believes that uncreative collections of facts or data are outside the scope of the copyright clauses. However, according to the TRIPS Agreement, the database can be protected by copyright if creativity is involved in the data arrangement or selection process.
Design Rights
Design rights focus exclusively on the tech products’ aesthetics. They are exclusive rights that protect IP, like the appearance of a product; provided it is new and has a unique character that sets it apart from any pre-existing designs that could be known to date. A unique product will always stand out in the market and create more value and reliability among consumers—like Apple products.
Trade Secrets
In tech companies, trade secrets include algorithms, manufacturing processes, data management systems, source codebase, technical analysis methods, or any others that help generate value and give a competitive advantage. Trade secrets are kept confidential via legally binding agreements (NDAs or confidentiality agreements), along with all the mentioned repercussions if breached.
In markets like the US, the IP sector supports over 40 million jobs and accounts for over 38% of the total GDP ($6 trillion). In one of their reports by Shard Secure, they mentioned that the Commission on the Theft of American Intellectual Property roughly estimated that annual loss from IP infringement — which includes trade secret theft, counterfeit goods sales, and software piracy — range from $225 to $600 billion which is almost 1% to 5% of the US GDP.
Navigating IP Infringement in Tech Domain
Dealing with infringement while trying to protect IP can be a daunting experience. In the above example of Google vs. Sonos, we see how tech giants tackle this situation with legal help.
If you feel someone has infringed upon your technology, software, or any tech-related data, here are some immediate legal actions to consider:
- Cease-and-Desist letter: It is a formal letter that demands the infringer stop using your algorithm, software, or product immediately. Sometimes, this letter can resolve the issue without further action needed.
- IP litigation: You can take the issue to court by filing a lawsuit against the infringer. You will have to produce all the evidence and IPR-related documents and defend your IP rights.
- Injunctive relief: The court can provide you with an injunctive relief to protect IP while the case is ongoing. This prevents further damage or exploitation of your tech data during litigation.
- Monetary settlements: In some cases, both parties may mutually agree on a monetary settlement without legally fighting in court.
Lumenci can help you with all the technical insights and valuation related to IP litigation and creating value for your innovative assets. Get in touch today and turn your IP portfolio into a revenue center.
How to Protect IPs in Tech Companies
Apart from filing for IPRs (patents, trademarks, copyrights, etc.), here are some mindful actions one can take to safeguard intellectual property in tech companies. These steps are beneficial, especially if your IPRs are under process and are not granted yet:
- Conduct comprehensive IP audits to spot vulnerabilities and ensure tech IPs are protected and up to date.
- Comply with all global IP or jurisdiction-specific laws to ensure your tech invention stays safe, especially if you have plans to expand your business globally.
- To maximize the value of your IP, you can license your patents, copyrights, or trademarks to other companies to generate new streams of revenue.
Lumenci can thoroughly guide you through the licensing process and help you with a competitive patent landscape analysis.
- Implementing AI-based monitoring tools will protect IP and recognize unusual patterns and malicious activities online. The tech assets must be secured via a robust cybersecurity framework, biometrics, and other advanced measures so that only limited and authorized people have access to them.
Our Final Thoughts on IP Infringement in Technology
We’ve already seen how important it is to protect IPs in today’s technologically advanced world. Being vigilant and proactive is essential to knowing when to take the right actions against IP infringement or infringers.
If you have invented a new tech, and are in the process of obtaining the IPR for it, regular audits, complying to IP laws, robust cybersecurity, and knowing the legal options can make all the difference. At Lumenci, we believe in protecting your innovation for your long-term success and growth. Our experts will also assist you with developing a winning patent strategy for your business if required.
About Lumenci
Lumenci’s global presence with offices in the US and India brings together over a hundred experts in technical and damage-valuation fields to offer comprehensive solutions to protect intellectual property worldwide. With a proven history of success in over 300+ IP litigations, 70K+ patent analyses and 175+ clients, Lumenci’s expert team is dedicated to safeguarding your innovations. The in-depth industry knowledge, combined with advanced automation technologies, ensures that all your legalities are taken care of, under one roof.
Visit us at lumenci.com to learn more or connect with us on LinkedIn and X for the latest updates. Let Lumenci be your trusted partner in defending and securing your ideas.
