During a down economy, many nanotechnology companies rely heavily on government grants as the influx of funds from private investors decreseases. As a result, these companies become particularly sensitive to IP disputes since many grants place limits on the use of funds to subsidize legal costs. In some cases, nanotechnology companies may risk bankruptcy if issues dealling with trade secret misappropriation, determintation of joint or sole inventorship, and breach of joint development agreements lead to litigation battles. Thus, stemming from the highly collaborative nature between many nanotech startups, universities, private laboratories, and their respective researchers, these entities must takes steps to ensure that their IP interests are protected throughout the R&D process, especially at the front-end.
In a recent article published in Nanotechnology Law and Business, Foley & Lardner attorneys Reed Christansen, Stephen Maebius, Leon Radomsky, and Steve Rutt, PhD provide examples of nanotechnology companies seeking bankruptcy protection as a result of intellectual property litigation. The authors also summarize steps that nanotech companies can take to protect themselves and to forestall litigation.