Want to bag the company's IP? You just may get caught and taken to the cleaners

Melbourne, 29 September: In endorsing the Deloitte Forensic recent survey that found that intellectual property theft is rampant in Australian companies, leading intellectual property lawyer Wayne Condon has warned both individuals and companies that they are under a misapprehension if they think this is an unstoppable business risk.

According to the Deloitte Forensic report there is a rising incidence of employees downloading customer lists, copying software coding or stealing business plans to take to competitors. Mr Condon who is a partner in the Melbourne office of Clayton Utz says that concurrent with the increase in intellectual property theft is a corresponding increase in cases before the courts.

"While companies obviously need to focus on fraud prevention systems it is also significant that there is a definite trend in these cases starting to reach the courts. The underlying implication is that no matter how good your systems some infringements will always get through. Business needs to know that the court provides an excellent ultimate defence and deterrent in an area that has a reputation for being vulnerable to exploitation.

"The cases we are seeing deal with the unlawful taking and use of confidential information, the copying of valuable computer software codes and the filching of customer lists, business plans and confidential tender opportunities" he warns.

"We are aware that many businesses think this is something that they simply have to 'grin and bear' in their overall business activity but this is definitely a misapprehension and businesses should be assured there are steps they can take to wipe out this white-collar crime.

"There is no doubt that the unauthorised disclosure or use of truly confidential business information can be prevented by a range of urgent court remedies if necessary. Similarly, copyright infringement and breach of confidence actions are powerful weapons to prevent the unscrupulous business copyist from taking valuable business information and reproducing it for the benefit of others."

Mr Condon acknowledges that often it is difficult to establish the proof that, for example, a former employee has taken confidential information and is intending to use it to the detriment of the former employer.

"Once again, however, there are some powerful weapons in the court armoury to get to the bottom of such matters. These remedies include the so-called Anton Piller orders which are akin to a civil form of search warrant enabling an employer who has established a strong suspicion of wrongdoing to search premises for evidence of breach of confidential information or infringement of copyright.

Mr Condon says this aspect of law is emerging rapidly and as long as a business is prepared to act quickly and decisively when faced with the potential misuse of confidential information or copyright, it is a risk that can be firmly dealt.

Mr Condon believes that a quick response not only puts paid to the individual instance but will also start to entrench a message to the overall sector that this type of illegal activity is well and truly within the court's reach.