Core Viewpoint - The increasing number of intellectual property and trade secret infringement disputes between large tech companies and their former employees has raised concerns in the venture capital community, impacting investment strategies and risk assessments [2][3][11]. Group 1: Recent Legal Cases - On July 28, a Shanghai court sentenced 14 former employees of Zunpai Communications Technology for infringing Huawei's trade secrets, resulting in a total fine of 13.5 million [2]. - JD.com reported that it has substantial evidence of intellectual property infringement against Jiushi Intelligent Technology, whose founding team previously worked in JD's autonomous vehicle division [2][6]. - CATL filed a lawsuit against Xiamen Haichen Energy Technology for unfair competition, highlighting the trend of former employees using proprietary technology from their previous employers [2][5]. Group 2: Impact on Venture Capital - Venture capital firms have become increasingly cautious, recognizing that lawsuits for intellectual property infringement can significantly affect the future prospects of startups and increase investment risks [3][11]. - Jiushi Intelligent recently completed a $300 million Series B funding round, and any legal issues could delay product launches, directly impacting business development and investor returns [3][11]. - Venture capitalists are enhancing their due diligence processes to assess potential conflicts between the technology developed by former employees and their previous employers' patents [3][11]. Group 3: Causes of Disputes - Many disputes arise because former employees inadvertently use research results obtained during their tenure at large tech companies, believing they have the right to do so [4][8]. - The lack of clear agreements regarding the ownership of research results often leads to misunderstandings and legal conflicts [4][8]. - The trend of former employees leveraging proprietary technology to gain competitive advantages in new ventures has intensified the scrutiny from their former employers [8][10]. Group 4: Recommendations for Resolution - Effective communication and preemptive agreements regarding the use of intellectual property are essential to mitigate disputes [4][10]. - Companies should implement comprehensive non-compete agreements and ensure they are enforced to prevent potential infringements [9][10]. - Venture capital firms are advised to include specific clauses in investment agreements to protect their interests in case of intellectual property violations by startup founders [13][14].