Data Breaches Threaten Intellectual Property

When you form a small startup, the only things you have going for you are dedicated employees (even if you are the only one) and your intellectual property. Businesses cannot hope to grow if their ideas are unintentionally or maliciously released to the world for competitors to take freely.

Unfortunately, data breaches are on the rise, and small startups have more reasons than ever to be worried about the security of their intellectual property.

A 2016 Internet Security Threat Report from Symantec found that total online security breaches have increased by 2 percent since 2014. In addition, the largest breaches saw the greatest increases in frequency. Those that exposed more than 10 million identities rose by 125 percent.

The report showed that most data theft victims are small and mid-size businesses. They may not have a massive amount of data to steal, but thieves know that they may not be as well protected as larger firms. Plus, third-party vendors that have access to company information may be even less secure.

The penalties of data breaches can be severe. PricewaterhouseCoopers estimates that companies around the world lose as much as $3.5 trillion due to occupational fraud and abuse. In addition, 72 percent of business that suffer from major data theft shut down within two years, according to Mashable. It isn't just because of the cost of recovery. If important intellectual property secrets are stolen, it can be difficult for a business to stay competitive.

Are you looking to start your own business in Arizona? The Law Offices of Donald W. Hudspeth, P.C., have years worth of experience guiding entrepreneurs through the formation of new businesses. Call us today to learn more.

Categorised in: Intellectual Property Law

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