Boards of directors have innumerable fiduciary duties to uphold. Among them are those related to protection of intellectual property against cyber attacks. While this rapidly evolving area has its own unique challenges, boards face the same question about how they address cybersecurity as they do any other duty—are they acting prudently, reasonably, and responsibly? Below are 10 areas they should consider as they confront the reality of cyber threats.
1. The stakes are high
Estimates show that IP assets alone represent 75 to 80 percent of the S&P 500 market value. U.S. IP is worth at least $5 trillion, and licensing revenues for company IP is estimated at $150 billion annually. U.S. businesses are thought to lose more than $100 billion annually in part to the cyber theft of IP.
Imagine your company is about to launch a new software program, but it is stolen from your servers days before launch. Knockoffs flood the market, harming the company’s value. Among the many questions that will be asked in the aftermath is whether the board acted with reasonable care to prevent such incidents.
2. The hackers are two steps ahead
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
