Dennis Fernandez, Managing Partner, Fernandez and Associates LLP
Irene Yang, Intern, Fernandez and Associates LLP

Most of the discussion around outsourcing in the technology sector focuses on the number of jobs outsourced and the advantages or disadvantages of overseas outsourcing. However, companies must realize the potential risks of moving intellectual property-producing functions overseas without knowing how it may affect their intellectual property rights and the companies' value. This paper provides an overview of some intellectual property risks involved in offshore outsourcing as they apply to the EDA industry, including breaching fiduciary duty, difficulties obtaining protection of patents, trade secrets, trademarks, mask works, and copyrights, difficulties enforcing judgments in foreign countries, and breaching U.S. regulations.