Building IP and platforms by IT services firms may trigger more lawsuits

As the industry’s business model transitions towards platform and intellectual property-led deals, there has been a spurt in litigations filed by IT services players. While earlier litigations were more related to contract breaches and disputes on project implementation timelines, the new ones are about misappropriation of trade secrets and infringement of intellectual property.

Such cases are believed to increase as companies start deploying AI and Gen AI technologies for coding and creating tools, as forecasted by industry players and analysts.

IP, which includes patents, trademarks, copyrights, and trade secrets, is very valuable to organizations. Intellectual property is the backbone of many companies, dictating their market dominance. For technology firms, safeguarding IP is paramount, as innovation and competition depend on it.

To mitigate risk, organizations should -

·         Manage and commercialize their IP assets

·         Avoid legal disputes

·         Set up contingency plans

·         Use intellectual property management software

Understanding the different types of intellectual property disputes is crucial for tech companies aiming to safeguard their innovations and maintain a competitive edge. IP disputes can have profound and far-reaching impacts on tech companies, affecting their financial health, market position, and capacity for innovation.