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Trade secrets and how they can plunge tech companies into expensive litigation. Mr. Futter for Raconteur

Insight Dror Futter Dror Futter · May 10, 2017

As technology reshapes the way we live and work, trade secrets have become very important. They have unleashed an unprecedented boom in litigation, legislation and media attention. And some investors and companies have found themselves in court or facing damages in the hundreds of millions of dollars.

“Trade secrets are the hardest form of IP to diligence because they are not registered with any governmental authority and very often are not even recorded in any tangible medium,” explains Dror Futter, a partner at Rimon. “At the same time, a venture built upon misappropriated trade secrets is as much at risk as a venture that infringes a third-party patent.” Several high-profile cases involving trade secrets, and the passage last year of the U.S. Defend Trade Secrets Act, have raised investors’ awareness of potential litigation. “Recently, an increasing number of M&A deals include the purchase of representation and warranty insurance for the benefit of the buyer, which covers liabilities arising from a breach of a representation or warranty,” says Mr. Futter.

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Mr. Futter has more than 20 years of high tech and business experience, he represents emerging companies and their investors, as well as a wide range of technology companies. More about Mr. Futter’s practice here