Kiandra Insights

Fear of Intellectual Property Theft and How Technology Leaders Can Mitigate It

Cassandra Wallace - Head of Software Engineering
by
Cassandra Wallace
Head of Software Engineering
|
December 9, 2024
Cassandra Wallace
Head of Software Engineering
December 9, 2024
Man looks suspicious of those around him

Intellectual property (IP) theft is a significant concern for technology leaders embarking on custom software development projects. The risk of proprietary code, algorithms, designs, or trade secrets being stolen can have dire consequences, including competitive disadvantage, financial loss, and damage to the company’s reputation. Here are 8 mitigation strategies we recommend to our clients when they embark on a software project with Kiandra.

This fear is exacerbated by the increasing sophistication of cyberattacks and the potential for internal threats.

1.  External Cyber Threats

Cybercriminals continuously seek to exploit vulnerabilities to gain access to valuable IP. This includes source code, proprietary algorithms, and sensitive data, which can be sold or used to develop competing products.

2.  Insider Threats

Employees, contractors, or partners with access to sensitive information may intentionally or unintentionally expose IP. This can occur through malicious actions, negligence, or insufficient security practices.

3.  Third-Party Risks

Engaging third-party vendors or partners for development can increase the risk of IP theft if proper safeguards are not in place. These external entities may not have the same level of security measures as the primary organisation.

4.  Inadequate Legal Protections

Without proper legal protections, such as patents, copyrights, and trademarks, it can be challenging to defend against IP theft. Organisations may struggle to enforce their rights and seek recourse if their IP is stolen.

5.  Globalisation

Developing software in multiple geographic locations or outsourcing to international firms can complicate IP protection due to varying legal standards and enforcement mechanisms.

To mitigate the risk of IP theft, technology leaders can adopt several strategies:

1.  Robust Security Measures

Implement comprehensive cybersecurity practices to protect against external threats. This includes firewalls, intrusion detection systems, encryption, and secure coding practices. Regularly update and patch systems to address vulnerabilities.

2.  Access Control and Monitoring

Use strict access control measures to limit who can view or modify sensitive information. Implement role-based access controls and continuously monitor access logs to detect and respond to suspicious activities.

3.  Employee Training and Awareness

Educate employees about the importance of IP protection and the risks of theft. Conduct regular training sessions on security best practices, data handling, and the consequences of IP theft.

4.  Legal Safeguards

Secure patents, copyrights, and trademarks to protect proprietary technology. Use non-disclosure agreements (NDAs) and confidentiality agreements with employees, contractors, and partners to legally bind them to protect IP.

5.  Secure Development Practices

Follow secure software development lifecycle (SDLC) practices that include security assessments, code reviews, and penetration testing. Use version control systems with audit trails to track changes and detect unauthorised modifications.

6.  Third-Party Vetting

Carefully vet third-party vendors and partners to ensure they have robust security measures in place. Include IP protection clauses in contracts and conduct regular security audits.

7.  Data Anonymisation and Encryption

Anonymise and encrypt sensitive data to reduce the risk of exposure. Even if data is stolen, encryption can prevent unauthorised access to its contents.

8.  Incident Response Plan

Develop and maintain an incident response plan to quickly address any breaches or IP theft incidents. This plan should include steps for containment, investigation, remediation, and communication.

By implementing these strategies, technology leaders can significantly reduce the risk of intellectual property theft, ensuring that their innovations and competitive advantages are safeguarded throughout the software development process.

Another step you can take to ensure project success is selecting the right software development partner.

Download Kiandra’s selection criteria checklist to learn more.

Share article
LinkedIn.com

More insights

A group of office workers looking stressed during a meeting; one woman holds her head in frustration while a man examines a document, highlighting workplace tension.

Why modernisation projects fail (and how AI reduces risk)

Cassandra Wallace
7/5/2025

Modernising legacy systems is one of the most critical and complex challenges facing today’s IT leaders. Whether you're in government, finance, or education, the pressure to replace ageing infrastructure with agile, user-friendly, cloud-based platforms is real.

Read more
Close-up of a person typing on a wireless keyboard at a modern desk setup with a laptop, tablet displaying charts, and a takeaway coffee cup in the background.

How to choose the right AI-savvy software development partner

Cassandra Wallace
5/5/2025

Choosing a software development partner has always been a critical decision but when AI enters the mix, the stakes get even higher. You’re not just hiring a team to write code. You’re trusting them to help you navigate emerging technologies, manage risk, and deliver long-term value with tools that are still evolving.

Read more
A dynamic, abstract image showing a stream of three-dimensional arrows, mostly blue, all moving in the same direction against a dark background. A red and blue glow accentuates the movement, creating a sense of speed and momentum.

50% faster: how AI is transforming legacy system modernisation

Cassandra Wallace
29/4/2025

Legacy systems are becoming increasingly costly to maintain and dangerously slow to adapt. As customer expectations grow and compliance requirements shift, traditional software development methods can’t keep up. AI-assisted development offers a new path forward, accelerating modernisation without compromising quality.

Read more

Let’s discuss your next project

Whether you’re curious about custom software or have a specific problem to solve – we’re here to answer your questions. Fill in the following form, and we’ll be in touch soon.

Email

Would you like to receive an occasional email showcasing the latest insights, articles and news from our team of software experts?

Thanks for reaching out! One of our software experts will be in
touch soon to help you with your enquiry
Oops! Something went wrong while submitting the form.

This website uses cookies to improve your experience. By browsing our website you consent to the use of cookies as detailed in our Privacy Policy