Avoiding Lawsuits When Hired by a Competitor

Network World's How to Avoid Getting Sued by a Former Employer focuses on the IT worker but its general advice is not something that any employee being hired by a competitor should ignore.

I also think there are some good pointers here for employers. Litigation costs run in both directions.

Follow the link below for "Trade Secrets" for reports on trade secrets litigation and you will employees departing for competitors constitute the majority of cases.

As for the article:

Such underhanded business practices-both the recruiting to obtain trade secrets and the knee-jerk litigation-pose a threat to IT workers, whose specialized knowledge and skills remain in demand even during this economic downturn. IT professionals need to be careful about taking jobs with competitors because their former employers could try to sue them for "misappropriating trade secrets," even if they did nothing of the sort, says Kump. He expects such litigation to increase as the economic downturn continues.

This is not to say that IT professionals should avoid taking jobs with competitors (unless, of course, they've signed a non-compete agreement with their existing employer). They just need to be aware that the potential exists, and they must take measures to protect themselves.

Kump spoke with CIO.com about the rise in intellectual property litigation and ways employees can avoid it.

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How can an employee protect himself or herself from such lawsuits?

A number of ways. There are steps they can take before they leave a job. That is, when they're ready to leave, to announce their
resignation and make a full disclosure of what they're taking and not taking. I advise people to make a list of everything they're taking from their office, such as family pictures and diplomas, and make it clear that you're not taking any [company] information with you. Employers will typically ask this of you.

I would also offer to show bags and boxes and anything you take out of the building. Give your employer an inventory and make sure your employer signs off on it. Make sure your employer has taken all information and systems. Access to passwords, if you have a BlackBerry with customer information on it, all of that should be rendered inoperable.

Another thing an employee should do if they think there's a possibility they could get sued-even if they haven't done anything
wrong-is to have their new employer indemnify them. Have an understanding with your new employer in writing that if for any
reason you're sued and you've done nothing wrong, that your new employer will cover your legal expenses

Some of those tips might have caught this kind of problem early: Former Silicon Valley engineers sentenced for trying to sell technology secrets to China