Gramm Leach Bliley Act (GLBA)
Provide an analysis of the three scenarios below.
1. (250 words + 1 high quality source)
Chapter 6 noted that Friendster has obtained several social networking patents that it could potentially assert against other social networking sites such as Facebook and MySpace. Suppose you are corporate counsel at one of these companies and you expect that you may eventually be sued by Friendster. Choose one of the following options and defend it. Note: You must use the literature to support your decision – DO NOT simply state your opinion. For example, you may see prior cases and use that as a model for your decision
Enforce blocking patent
Pursue licensing agreement
Work around the patent
2. (250 words + 1 high quality source)
Chapter 7 - The CEO of a small but promising start-up company needs an experienced engineer to head up a key aspect of the business and has selected Sam as a leading candidate. If hired, Sam would not only be exposed to the proprietary technology that already provides a significant advantage in the market but would be tasked with developing additional proprietary information and software. Sam is currently an employee of XYZ Corp., a competitor of the start-up. What potential problems might the CEO want to consider? What steps could the CEO take to address these problems?
3. (250 words – source not required)
Read about the Gramm Leach Bliley Act (GLBA) here: https://www.ftc.gov/tips-advice/business-center/guidance/how-comply-privacy-consumer-financial-information-rule-gramm and discuss the impact of GLBA on financial institutions. Specifically, address how GLBA helps protect your privacy.
Sample Solution
- Intellectual property theft: Sam is currently employed by XYZ Corp., a competitor of the start-up. If Sam is hired, he would be exposed to the start-up's proprietary technology and information. There is a risk that Sam could steal this information and give it to XYZ Corp. This could give XYZ Corp. a significant advantage in the market.
- Conflict of interest: Sam is currently employed by XYZ Corp., and he is likely to have a close relationship with his current employer. If Sam is hired by the start-up, there is a risk that he could be influenced by his current employer. This could lead to Sam sharing confidential information with XYZ Corp. or even sabotaging the start-up's efforts.
Full Answer Section
- Loss of trust: If the start-up hires Sam, it will be sending a message to its employees that it is willing to hire people from its competitors. This could lead to a loss of trust among the start-up's employees.
- Have Sam sign a non-compete agreement: A non-compete agreement would prevent Sam from working for a competitor for a certain period of time after he leaves the start-up. This would help to protect the start-up's intellectual property.
- Have Sam sign an NDA: An NDA would prevent Sam from sharing confidential information with XYZ Corp. or any other third party. This would help to protect the start-up's trade secrets.
- Be transparent with employees: The CEO should be transparent with the start-up's employees about the decision to hire Sam. The CEO should explain the reasons for the decision and the steps that are being taken to protect the start-up's intellectual property. This would help to mitigate the risk of losing trust among the start-up's employees.