Without careful preparation, Irish technology companies moving into the US risk losing ownership of intellectual property such as software designs, falling foul of strict workplace laws and encountering visa problems, according to American law firm Mintz Levin.

Its attorneys discussed potentially troublesome legal issues in the areas of immigration, intellectual property and employment at a seminar in Dublin recently.

While they warned of the dangers of entering the US market due to its different legal environment, they also stressed that those differences were a "manageable risk".

For example, employment laws set out very specific guidelines for employers which had to be followed, said attorney Mr Bob Gault, who addressed employee issues. "The whole employment relationship is regulated very heavily from just before, to the point after, a person becomes an employee," he warned.

Such laws control what could be put on job applications or in contracts, what could be said in interviews, and they also laid out precise workplace safety regulations and employee entitlements.

Companies would probably want to hire a human resources manager who could provide guidance, he said.

He also pointed out that Irish companies cannot hire only Irish people.

Employees brought over from Ireland must have proper visas or they risk deportation, said attorney Ms Susan Cohen, who specialises in immigration.

She pointed out that a wide range of visa types were available but noted that visas must be obtained before arriving in the US and could not be changed to a different type once the person was in the country.

Irish companies needed to be fully aware of the intricacies of US intellectual property law covering patents, trade secrets, trademarks and copyright, said attorney Ms Lisa Johnson-Firth.

She pointed out that software development could be an especially confusing area. Without an adequate licensing agreement, developers could lose control of their intellectual property, while companies that hired a firm to develop software for them did not have ownership of the program unless an agreement assigned the rights to them.

If ownership of the rights to a program aren't clear, additional problems may arise if the company is sold. "No one wants to buy a property where a clear ownership trail can't be established," she said.

The Internet has introduced new headaches for firms - disputes over domain name ownership, for example.

Even trying to operate a website in the US can expose an Irish company to a lawsuit if the firm hasn't researched who else is competing in that particular market, since there are many patents on Internet processes, said attorney Mr Jason Mirabito.

Irish companies can "get whacked" if they don't look at what is happening in their trading area, he said.

Companies eyeing the US market need to understand the types of venture capital and investment "angel" funding available to them in the US and the ways in which deals can be structured, said attorney Mr Richard Kelly.

He warned against trying to hang on to equity at all costs, and thus losing out on help from investors. He also said firms should be selective about choosing a venture capital investor.

"Find someone who believes in your story, has access and can get attention," he said. But he noted that companies needed to be realistic - "the best venture capitalists might get between 3,000 and 5,000 plans a year and make 20 investments," he said.

He noted that companies would find it more difficult to attract funding at the moment due to the market downturn.

If they do get funding, it will probably be less than they would have received six months ago. "My guess is that valuations are off 40 to 70 per cent," he said. But he remained upbeat about what he termed the "paused" market and said companies should not be too dismayed. "The good news is that the money is still there," he said.

Boston-headquartered Mintz Levin, for which Labour TD and former party leader Mr Dick Spring acts as a special consultant, represents 350 technology and biotechnology firms including America Online (AOL), MCI/Worldcom and Akamai.

The company also negotiated the agreement between the Massachusetts Institute of Technology and the Government to locate the $150 million (€160 million) Media Lab Europe in Dublin.