Legal Question in Intellectual Property in Massachusetts
Transfer of technology from one company to other company
My case is the following:
Before some years I was one of the founders of a small company (company A); my partner was an established company (company B).
I am the owner of 12 % of the shares of company A and my partner; company B, owns 88 % of the shares. Company B was bought by an international company (company C).
The board of directors of company A decided to change the original objective of the company and to focus on a future product that I was one of the inventors. We work 3 years on this project. Company C wanted the project for themselves, so they demanded to close the activity in company A and transfer the technology to company C. Company B, closed all the activity in company A.
Company C continues developing this product. They announce that it will be on the market on the next year.
My question is:
Do I have any rights over this product? Can I demand for compensation?
Thanks in advance
2 Answers from Attorneys
Re: Transfer of technology from one company to other company
under Israeli Corporations law, a minor share holder has the right to remedies against unjust under Israeli Corporations law, a minor share holder has the right to remedies against unjust acts of the majority. If you are actually the inventor (or one of a group of inventors) there is a chance that you are entitled for royalties, but it depends on the the specific facts.
Re: Transfer of technology from one company to other company
This looks to be not so much an issue of ownership or rights in the invention, but rather one of possible violation of fiduciary duty by the "Company B" directors of "Company A" -- something that counsel for "Company C" might well understand if it were brought to their attention.
Best wishes,
LDWG
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