Business Torts and Intellectual Property

Business Torts and Intellectual Property

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Business Torts and Intellectual Property

In the scenario involving Sam, ABC Paper Corp, and XYZ Paper Co, there are many things to consider when analyzing if there are intellectual property issues, tort, or whether Sam’s actions subject him to criminal liability.

Intellectual Property

Intellectual property is property that is intangible creations of the human mind. Types of intellectual property include trade secrets, patents, trademarks, and copyrights (Pagnattaro, M. A., Cahoy, D. R., Magid, J. M., Reed, O. L., & Shedd, P. J., 2016). In the scenario, Sam downloads his client list on a flash drive. The intellectual property at stake is the client list, which is a trade secret. XYZ Paper Co offered Sam an employment opportunity, but only if he brings his client list with him. However, Sam signed a non-disclosure agreement (NDA) as a condition of his employment with his current employer, ABC Paper Corp. Each form of intellectual property comes with a set of rights that the property owner possesses to prevent others from using the intangible property (Cavanaugh, M. E. (2012). By signing the non-disclosure agreement, Sam agreed to keep the trade secrets confidential.

Ethics and torts

Sam’s actions are not ethical. Sam breached his contract, stole trade secrets for a competitor, and physically harmed his boss, Natalie. Sam knew what he was doing was wrong, and that is why he ran out of the office when he got caught. If he was not doing anything wrong, he would not have a reason to run out and hurt Natalie.

Sam’s behavior was unreasonable and caused injury, he was negligent. Negligence is a type of tort that occurs when one who has a duty to act reasonably instead acts carelessly and causes injury to another (Pagnattaro et al., 2016). Sam did not act in a careful manner, therefore, putting others in danger. He was aware of his duty to protect the company’s trade secrets, as stated in the NDA, but knowingly and willfully made the decision to steal the client list in exchange for employment. Sam was the cause of Natalie’s injuries because he shoved her as he ran out of the office. He needed that information in order to get that position at XYZ Paper Co and he was not going to let Natalie stop him.