The Rise of Tech Disputes: What Every Company Should Know
Glory Ovia - Attorney | 8/21/2025
Understanding the Legal Risks in a Digitally-Driven Business World
Technology has become central to business operations — and with that comes a new wave of legal disputes. From disagreements over software licensing and app development contracts to issues of data privacy breaches and platform misuse, tech-related legal conflicts are increasingly common and complex.
In this article, we break down the typical causes of tech disputes, what to include in contracts to avoid ambiguity, and how businesses can shield themselves through compliance and clear legal documentation.
Why Are Tech Disputes Becoming So Common?
Tech moves faster than regulation. Startups and corporates alike are adopting platforms, launching tools, or outsourcing development — often without solid agreements or clear understanding of IP rights.
Here are some common causes of tech disputes today:
Disagreements over software ownership (especially with outsourced developers)
Breach of contract between platform providers and users
Data misuse or non-compliance with data privacy laws
Licensing conflicts (e.g. open-source vs proprietary terms)
Poorly drafted terms of service or vendor agreements
AI-generated content and who owns it
These aren’t just legal nuances — they’re real issues that can affect funding, partnerships, product launches, and customer trust.
Key Areas of Risk for Businesses
IP Ownership in Software Development: Who owns the code — your business or the freelance developer you hired? Unless it’s clearly defined in a contract, you may not legally own the product you're building.
Data Handling and Privacy: With regulations like Nigeria’s NDPR and the global GDPR, how you store, use, or share customer data is more than a tech issue — it’s a legal one. Mishandling data can lead to disputes and regulatory action.
Service Level Agreements (SLAs): If your business relies on cloud or software vendors, you need clear SLAs. When platforms crash or underperform, vague agreements can leave you exposed.
Use of Third-Party Tools and APIs: Many companies unknowingly violate licensing terms when integrating plugins, libraries, or APIs. This can trigger legal action, even years after the fact.
How to Protect Your Business from Tech Disputes
Draft Strong Tech Contracts: Clearly outline IP ownership, usage rights, responsibilities, and dispute resolution clauses in all development and vendor agreements.
Perform Legal Due Diligence on Tools: Know the terms behind every software license or integration you use — especially open-source tools with usage restrictions.
Stay Updated on Data Laws: Appoint a compliance officer or work with legal counsel to ensure you're aligned with current data regulations.
Prepare for Dispute Resolution: Include arbitration or mediation clauses in your contracts. These often resolve issues faster and with less cost than going to court.
Final Thoughts: Law and Tech Must Evolve Together
As businesses continue to innovate, legal frameworks must evolve with them. Companies that ignore legal groundwork in tech risk more than lawsuits — they risk their operations, investments, and long-term growth.
At Pachimond Attorneys, we guide companies through the complex web of technology law, helping them avoid disputes before they arise — and handle them efficiently when they do.
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Insights, Opinions & Legal Perspectives
Understanding the Law Beyond Courtrooms At Pachimond Attorneys, we believe that knowledge is power — especially when it comes to the law. Our blog is here to empower you with easy-to-understand articles that break down complex legal issues into practical advice you can use. Whether you're starting a business, protecting your brand, or simply trying to make sense of your legal options, we’ve got you covered with insights that are clear, helpful, and relevant.