> namely that the employer knew (or at least "was informed") that illegal things were going on

The problem is engineers lack a good grasp of how the law works compared to lawyers - sometimes the action is not illegal, but it will still looks bad after discovery. Leading to unnecessary settlements not as a matter of law, but of optics. "If you give me six lines written by the hand of the most honest of men, I will find something in them which will hang him."

> "If you see things happening that you believe might be illegal, please keep quiet about it because you don't understand the law"

That's not what they are saying - they are saying don't use email to do it. I mean would you appreciate it if your startup's first employee sends an email stating "We are infringing on these 18 Microsoft patents" on the record?