Reputation at Risk: IP Lessons for Today’s Boards

Intellectual property issues used to be buried in licensing agreements, legal memos, and back-office negotiations. Today, they’re front-page news.

From generative AI lawsuits and trade secret disputes to cross-border data fights and copyright takedowns, IP is no longer a quiet corner of legal strategy—it’s a reputational flashpoint.

For corporate boards, this shift brings new urgency. IP missteps don’t just cost money—they erode public trust, trigger regulatory scrutiny, and raise questions about oversight. In a world where governance is judged in real time, staying ahead of IP-related risk means rethinking how boards engage with legal counsel and innovation leadership.

IP isn’t just technical—it’s strategic, and now it’s public

Historically, boards treated IP as a technical matter best left to internal counsel or R&D teams. But recent headlines suggest otherwise.

When a company is sued for scraping copyrighted data to train AI models, it’s not just a legal issue—it becomes a brand issue. When a former employee walks out with trade secrets and joins a competitor, investors ask what protections failed.

Public-facing IP disputes reveal more than contract language—they expose how the company thinks, how it governs, and how it prepares for growth.

The board’s role is oversight, not micromanagement—but it must ask better questions

Boards aren’t expected to manage patents or oversee every licensing deal. But they should expect regular reporting on the company’s IP posture, especially in industries where innovation is core to the business.

Key questions to consider:

• Are we tracking emerging IP risks in our sector?

• Do we have policies for responsible AI, data usage, or open-source compliance?

• Is our IP portfolio aligned with our business strategy—or is it a patchwork of past deals?

• How are we protecting IP in global markets with different enforcement standards?

When boards ask these questions, they empower legal and operational teams to elevate IP from a defensive tool to a source of strategic advantage.

Litigation isn’t always the biggest risk—sometimes it’s the narrative

In some cases, the company may be on firm legal ground, but the reputational narrative still causes damage.

Think of recent lawsuits where companies technically complied with copyright law, but public perception saw exploitation or overreach. Even if the case is dismissed, the reputational cost can linger.

Boards should work with legal and communications leadership to scenario-plan. What’s the response if a lawsuit is filed? If a former partner claims IP theft? If public interest groups question AI training methods or licensing terms?

Proactive planning can mean the difference between a one-day story and a brand-altering controversy.

Legal strategy belongs upstream—not just after the fact

At Evergreen Valley Law Group, we often work with companies to strengthen IP posture before a dispute arises. That includes reviewing contracts, updating policies, stress-testing data strategies, and aligning innovation initiatives with current laws and public expectations.

Boards that involve legal early—especially during product development, partnership formation, or geographic expansion—are better equipped to avoid both litigation and its reputational fallout.

Final thought

IP oversight is no longer a quiet, back-office function. It’s a boardroom issue with direct implications for risk, value, and reputation.

For boards seeking to lead with integrity and foresight, now is the time to raise the bar on how IP risk is assessed, reported, and managed.

What is your board doing to stay ahead of IP risk and public scrutiny?