Huntington Beach, CA asked in Business Law, Contracts, Copyright and Criminal Law for California

Q: Business partner is secretly copying our product and business

I designed an electronic bicycle accessory that helps safer bicycling on roads for groups and individuals. While I was still designing it, I brought in a partner to setup manufacturing contracts and marketing for this product. However it was still under development, and I did not yet protect the intellectual property. I have a feeling that my partner has some of the working details of the product and attempting to copy and setup his own business. In the original setup we agreed for equal partnership and incorporated it and we both are the officers. Unfortunately there was no NDA and things happened very quick. Is there a way for me to prevent my partner in his attempts. Probably questioning the fiduciary duties towards our original company? If it doesn't work, can I walk out and pursue on my own? Summer is coming and I don't want to lose season's potential.

1 Lawyer Answer
Ali Shahrestani,
Ali Shahrestani,
Answered
  • New York, NY
  • Licensed in California

A: There may be various de facto intellectual property protections you have, even though you didn't file for registered IP rights it seems. There may be various contractual protections you have as well. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.

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