The CEO Poll: Court battles over stolen work product likely to rise
By JOHN GREENWOOD Financial Post
Lawsuits companies launch against former employees alleging theft of intellectual property will grow substantially, according to a poll of chief executives for the Financial Post.
By a margin of eight to one, panelists predicted such legal battles are set to increase. More than twothirds said the courts should take tougher action, especially in the case of people who fail to observe noncompete clauses in their employment agreements.
The Web survey, conducted by Compas Inc. in association with BDO Dunwoody LLP, found that, for some panelists, taking a more forceful approach against unethical employees is a matter of fairness, while for others it is about protecting the system.
“You can’t deprive people from earning a living, but theft is theft,” one respondent said.
“Non-competes for executives should be more strictly enforced,” said another. “Executives are paid premium wages and perquisites for their role and their positions. Leaving and joining a competitor is like having your cake and eating it too. Unfortunately, the courts, in my experience, have been reluctant to side with employers.”
The poll was conducted from Oct. 24 to 26, and respondents constituted an essentially hand-picked panel of leaders of mostly small- and medium-sized firms. In studies of the general public, surveys of 118 are deemed accurate to within about 9.1 percentage points, 19 times out of 20.
In contrast to the majority opinion, one respondent suggested that in judging such matters, courts should consider the culture of the company. “If corporations are treating their employees with respect and [keeping employees well-compensated], automatically they are boosting loyalty among their employees,” the panelist commented. “On the other hand, if corporations are treating their employees as commodities, they should not expect any favour or loyalty from their workforce.”
Only 9% of respondents said they expect the number of lawsuits over theft of intellectual property to diminish, while 5% had no opinion.
These are the key findings from the current web-survey of the panel of CEOs and business leaders undertaken for the Financial Post under sponsorship of BDO Dunwoody LLP.
To view the complete poll, please click here
The BDO Library holds news bulletins, newsletters, budget reports both provincial and federal, articles and tip guides on an extensive range of topics in accounting services. Our publications also touch upon financial recovery, risk management, family business, and litigation/forensic accounting.
Previous poll results
