News recently of Jimmy Choo's intellectual property victory over M&S has understandably focused the attention of footwear companies on protecting their IP rights. But what is often overlooked is the contracts of those who are the creators of the IP in the first place - a company's employees.
Indeed this is equally true of all key employees within a company, as every week brings news of X having left fashion company A to join company B taking with him (but mention this quietly) all sorts of confidential information likely to be of considerable use to his new employer. And in all probability, he will then seek to persuade some of his former colleagues to join him at his new workplace.
How is an employer to guard against such a situation? The answer lies in ensuring that contracts of employment protect employers by incorporating provisions covering:
• The use and disclosure of confidential information.
• The ownership of IP rights.
• Enforceable non-compete provisions to stop your lead designer working for a
competitor, and to stop him taking his colleagues with him.
• Enforceable garden leave provisions.
Without such provisions footwear company owners are, at best, exposing their businesses to unnecessary, and unfair, competition, when the market is competitive enough as it is. For the managers of such companies not to have thought about the inclusion of such provisions can only mean that they are unconcerned to protect their businesses and their shareholders.
Mark Watson is an employment law partner and member of the Fashion Law Group at City solicitors Fox Williams LLP www.foxwilliams.com / www.fashionlaw.co.uk © Fox Williams LLP 2007
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