A decision recently handed down by the U.K. High Court of Justice involving a dispute over software created by a co-founder of a hedge fund manager highlights the risk of failing to clearly document intellectual property rights at the inception of a manager’s business.  The decision also emphasizes the importance of clearly delineating, in hedge fund manager partnership and employment agreements, ownership of software and other intellectual property developed or modified by principals, employees or contractors of the manager.  This article summarizes the facts and legal analysis underpinning the court’s decision.  See also “Protecting Hedge Fund Trade Secrets: What a Difference a Year Makes,” Hedge Fund Law Report, Vol. 5, No. 16 (Apr. 19, 2012).