The next evolution of IP litigation escrow
Nov 30, 2009

During the discovery process, defendants must satisfy the court-prescribed discovery requirements while protecting their valuable IP. Plaintiffs, on the other hand, need easy and reasonable access to that same information in order to prepare their case. To satisfy these requirements in Intellectual Property (IP) litigation cases, parties use an escrow process that has some inherent inconveniences.
Currently, an escrow agent acting as a neutral third party provides and manages a secure, locked-down, and controlled physical “clean room” that allows plaintiffs the opportunity to access and examine all pertinent IP. This is normally a secure room in the escrow agent’s office -- or a trusted partner’s office if the escrow agent does not have presence in the city where the discovery is taking place. In that case, the locked-down system containing the IP has to be physically shipped via traditional means. This means:

• The expert witnesses currently have no option to securely inspect the IP from the comfort of their home or office.
• The expert witnesses might have to travel and work during the “office hours” of the host agent, incurring charges for flights, accommodations, local transportation, and meals – not to mention the inconvenience to witnesses.
• There is a risk of losing or damaging the system with the IP being shipped to and from the inspecting location.
• Modifying or adding additional materials for discovery at a later date is costly.
• The IP residing in the physical system used by the inspector could be compromised.
• Inspectors are only allowed access to IP via limited toolsets like basic editors or PDF viewers.

New technology is NOW available from Chaperon LLC that offers a better way to handle IP Litigation escrow -- allowing multiple parties to inspect source code or other IP remotely and simultaneously from multiple geographic locations.
Here’s how it works: A “golden” or master copy of the IP is first placed in 
Chaperon Secure™ Active Escrow -- making it virtually impossible to copy or pirate. The IP owner is allowed to add and/or update the source code at any time. Chaperon Secure™ Inspecting Station can then be used by multiple parties to browse, view, and inspect the contents simultaneously anytime, anywhere – eliminating expensive network connections and the cost of travel. Source code is fully protected during transport and only authorized parties can inspect the code.
Chaperon technology:

•  Allows the choice of in-office or remote secure inspection of the source code.
•  Eliminates need for dedicated, expensive network connections.
•  Protects the rights of both the IP owner and inspecting parties.
•  Eliminates the risk of shipping IP on systems via couriers.
•  Eliminates the risk of having the IP on physical systems used by the inspectors.
•  Allows expert teams to interact and inspect source code without being able to copy or compromise it.
•   Enables code inspectors to navigate and search the files of the escrowed code using powerful, yet easy to use  Graphical User Interfaces provided by the Chaperon Secure IDE.
•  Protects escrowed code from third-party interaction while being reviewed by code inspectors.

To learn more about how this breakthrough technology can help protect your clients, check out our website [] or contact us today [] for a free consultation.

Posted By Ashif Dhanani |


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