IP and Data Essentials for Tech Employers 

Technology companies require employees to engage with data and proprietary technology and develop unique software and hardware applications. As such, understanding some of the key considerations you, as an employer, should be aware of is key. While employment law applies to employers in all sectors equally, you should ensure to consider entitlements and obligations that are emphasised for your specific industry. This article explains specific intellectual property (IP) and data privacy considerations for employees at tech firms. 

Protecting your IP and Confidential Information 

Your IP is a valuable asset and must be protected. The best way to protect this asset is to ensure that your employment contracts are fit for purpose. These clauses must be carefully drafted to ensure that all intellectual property rights created by the company and its employees remain with the company. IP clauses cover a number of rights, namely: 

• patents;
• right to inventions; 
• copyright and related rights; 
• trade marks; 
• trade names and domain names;
• rights in get-up; and 
• trade secrets. 

Data Privacy 

Dealing with personal data is inevitably part and parcel of working in the technology industry, and you will need to ensure that appropriate systems and procedures are put in place to ensure compliance with UK GDPR legislation. 

As an employer, your data protection obligations apply not just to customers but also to employees. To stay compliant, you need clear safeguards and policies in place. These can be outlined in an employee handbook, setting out:

• rights; 
• responsibilities; and 
• best practices within the company.

Another consideration when navigating data privacy concerns your engagement with employees, workers and contractors working outside of the UK. You may transfer data to these workers in order to perform services. In these circumstances, it is important to consider whether the transfer of data to the overseas jurisdiction is a ‘restricted transfer’. 

Transfer of data to a restricted jurisdiction without adequate safeguards and mechanisms could result in significant fines for your business. Data protection agreements are, therefore, essential to overcome this regulatory hurdle and can supplement your contractor agreements and employment contracts. 

GDPR Essentials Factsheet

This factsheet sets out how your business can become GDPR compliant.

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Protecting Your Interests Beyond the Employment Relationship

Technology companies cannot function without a talented workforce. Incorporating carefully drafted post-termination restrictions preventing former employees, workers and contractors from potentially poaching highly valued members of your workforce is an important consideration. You may wish to go a step further and restrict a former member of your workforce from entering into direct competition with your company. 

These legitimate business interests can be achieved by including robust restrictive terms known as ‘non-solicitation’ and ‘non-compete’ clauses. These restrictive clauses protect your interests beyond the scope of an employment relationship and so are particularly useful when managing your interests post-termination. 

Key Takeaways

Tech employers and employees have a range of rights and responsibilities in protecting a business’ IP and data. Properly drafted employment contracts can: 

• protect your intellectual property;
• protect your confidential information;
• ensure data protection and compliance with policies and procedures; and
• protect your interests beyond the scope of your employment relationships.

If you need help with hiring employees, our experienced employment lawyers can assist as part of our LegalVision membership.  For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.  Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions