How to avoid litigation?

Open and transparent communication is key. Always strive to clearly define expectations, contracts, rules  and processes, since misinterpretations can result in conflicts with clients, consumers, partners and employees. It is easier to address these matters in advance rather than afterward. 

Make sure your documents are in order. Ensure that all agreements, transactions, communications and procedures are well documented, regularly reviewed and updated from time to time to make sure these reflect current (legal) requirements.

If you are entering into a major business transaction or partnership, you should do thorough research on your collaboration partner. Look at his background, reputation, financial health and IP management. Remember: if in doubt, do not proceed without question.    

Consider using alternative conflict resolution techniques such as mediation or arbitration. These techniques can resolve disputes in a way that is acceptable to both parties while being more effective and pleasant.

When involved in a lawsuit, a good attorney will be worth his or her weight in gold. In order to avoid being tangled up in court, consulting an attorney at an early stage is the way to go. The attorney is likely to offer insightful advice, evaluate contracts and rights, and guide you around any legal pitfalls particular to your situation.