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Category Archives: Non-Compete Enforceability

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What You Need to Know About Non-Compete Covenants in India

Posted in International, Non-Compete Enforceability, Practice & Procedure

As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog entry about non-compete covenants in India by technology and corporate attorneys Sajai Singh and Soumya Patnaik of J. Sagar Associates in Bengaluru, India. Sajai serves as the President of ITechLaw, a leading technology law organization.  This entry is part one … Continue Reading

Shanghai Courts Provide Additional Relief to Employers for Breach of Non-Compete Agreements

Posted in International, Non-Compete Enforceability, Trade Secrets

Non-compete agreements are widely used by employers in certain industry sectors in China to protect their trade secrets and confidential information.

In China, employers may require the employee to continue to perform the non-compete obligation and pay liquidated damages in accordance with the non-compete agreement after breach occurs.

In the past, however, the following uncertainties could impede the employer from … Continue Reading

Kansas Federal Court Denies Preliminary Injunction For Alleged Violation Of Confidentiality And Non-Compete Covenants under Canadian Law

Posted in International, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

The plaintiff corporation — now a Delaware LLC based in Kansas — was headquartered in Alberta, Canada at the time its employees signed agreements containing confidentiality and non-compete covenants.  The agreements designated the applicable law to be that of Alberta.  When its ex-employees allegedly violated the covenants, the plaintiff sued them and their new employer in a Kansas federal court.  … Continue Reading

Webinar Recap! International Trade Secrets and Non-Compete Law Update

Posted in International, Legislation, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

We are pleased to announce the webinar “International Trade Secrets and Non-Compete Law Update,” is now available as a podcast and webinar recording.

The fifth webinar in the 2014 series, was presented by Wan Li, Ming Henderson, Justine Turnbull and Daniel Hart, focused on non-compete and trade secret considerations from an international perspective. Specifically, the webinar involved a discussion … Continue Reading

United Kingdom Update on Contractual Notice Periods and Restrictive Covenants

Posted in International, Non-Compete Enforceability, Restrictive Covenants

An employee cannot ‘walk out’ and refuse to work to avoid their notice period and the restrictive covenants contained in their contract of employment.

In Sunrise Brokers LLP v Rodgers [2014] EWHC 2633 the High Court held that an employer does not have to accept that a ‘walk out’ by an employee will terminate the contractual relationship. The employer has … Continue Reading

Seyfarth Attorneys Present on Latest Developments in Trade Secrets and Non-Compete Law At ABA Annual Meeting

Posted in Legislation, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

Seyfarth partners Robert Milligan and Kate Perrelli will lead a CLE program for the ABA IPCentral Conference during the ABA’s Annual Meeting in Boston on August 7th.

They are scheduled to be joined by in-house counsel Pamela Davidson from U.S. Foods, Karen Tompkins from Stryker, Lisa Seilheimer from CDW, and Jerry Cohen from Burns & Levinson LLP.

The panel will … Continue Reading

Upcoming Webinar: Protecting Confidential Information and Client Relationships in the Financial Services Industry

Posted in Data Theft, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

On Tuesday, August 26, 2014 at 12:00 p.m. Central, Seyfarth attorneys Scott Humphrey, Jason Stiehl and Rebecca Woods will present the sixth installment in its series of 2014 Trade Secret Webinars. They will focus on trade secret and client relationship considerations in the banking and finance industry, with a particular focus on a firm’s relationship with its FINRA members.  Topics … Continue Reading

No Massachusetts Non-Compete or Trade Secret Legislation This Year

Posted in Legislation, Non-Compete Enforceability, Trade Secrets

Although, as we have previously reported, the Massachusetts legislature arguably got closer to enacting a non-compete statute this year than ever before ─ which, if Governor Deval Patrick had his druthers, would have banned them outright ─ there will be no new legislation this year according to our sources.   The legislative session ends today.

As we last reported, … Continue Reading

Liquidated Damages, A Permanent Injunction, and Attorneys’ Fees Awarded For Violating Non-Disclosure/Non-Compete Agreement And Preliminary Injunction

Posted in Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets

In a well-written recent opinion concerning violation of both a confidentiality/non-compete agreement and a preliminary injunction, a federal judge explained in detail why she was awarding liquidated damages, entering a permanent injunction, and assessing legal fees.

Summary of the Case

Two financial planners, one an individual and the other a corporation, negotiated a merger of their businesses.  Before being provided … Continue Reading

Once You’ve Made Your Restrictive Covenant Bed You Must Lie Upon It…

Posted in International, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

The traditional approach taken by the English Courts to restrictive covenants was confirmed in the decision of the Court of Appeal in Prophet plc v Huggett [2014] EWCA Civ 1013. The Court of Appeal overturned a High Court judge’s decision that the words “or similar thereto” should be added to the relevant clause in order for it to make … Continue Reading

There Are Many Ways to Milk a Cow and Not All Are Protected Trade Secrets

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

A consultant of a company entered into a consulting agreement with a competitor. The scope of his consultancy of the first company involved dairy-permeate processing systems and the second involved lactose-processing systems. The Court of Appeals of Minnesota found that these businesses were sufficiently distinct such that disclosure of information regarding one business would not violate the non-compete agreement prohibiting … Continue Reading

Seyfarth to Host Webinar on International Trade Secrets and Non-Compete Law

Posted in International, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

When the Walt Disney Company built the “It’s a Small World” ® ride for the New York World’s Fair in 1964, they probably had no idea of the challenges that globalization could pose 50 years later. From cases involving the sale of stolen trade secrets to foreign companies to departing employees setting up competing business in different jurisdictions, many … Continue Reading

Rebecca Woods on Recent Kentucky Supreme Court Decision Holding that Non-Compete Failed for Lack of Consideration

Posted in Non-Compete Enforceability, Practice & Procedure

In a recent ruling by the Supreme Court of Kentucky, Creech v. Brown (June 19, 2014), the court affirmed that in Kentucky, noncompetition agreements must be supported by adequate consideration in order to be enforceable. The circumstance addressed by the court involved an employee who was presented with a noncompetition and confidentiality agreement after working for the employer for … Continue Reading

Trading Secrets Readers: Cast Your Vote in the ABA’s 100 Best Legal Blogs Competition!

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

Voting is open for the American Bar Association’s Annual 100 Best Legal Blogs competition. You helped us get named to the list in 2013, and we hope you will cast your vote today to help keep Seyfarth’s Trading Secrets blog on the ABA’s list for 2014.

Trading Secrets is a resource for employers and legal professionals that provides timely legal … Continue Reading

Seyfarth Offers 2014-2015 Edition of 50 State Desktop Reference: What Employers Need to Know About Non-Compete and Trade Secrets Law

Posted in Non-Compete Enforceability, Trade Secrets

What Employers Need To Know About Non-Compete and Trade Secrets Law

There is no denying that there exists a variety of statutes and case law across the country when it comes to employee non-competition and non-solicitation agreements, as well as the protection of proprietary information. All too often, what is enforceable in one state may be questionable in another and … Continue Reading

Eleventh Circuit Affirms Alabama Federal Court Ruling that Non-Compete Signed Prior to Employment is Void

Posted in Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants

A few months ago, we reported on a federal court decision in the Southern District of Alabama declining to enforce a non-compete and non-solicitation agreement against a former employee who executed the agreement before he began his employment. Last week, a panel of the Eleventh Circuit affirmed the District Court’s decision in an unpublished opinion.

As we reported following … Continue Reading

Florida Court Finds That Employer Without Knowledge That Employees It Just Hired Have Non-Competes Are Not Liable For Tortious Interference With Contract

Posted in Non-Compete Enforceability, Practice & Procedure

A defendant company was unaware, when it hired two individuals, that they had entered into non-competition agreements with their prior employer.  As a result, according to a Florida federal court, the prior employer did not have a valid cause of action against the new employer for intentionally interfering with those non-compete obligations. 

Summary of the Case

During their employment by … Continue Reading

On the Eve of The Esplanade July 4th Fireworks Celebration – Massachusetts May Not Blow Up Non-Competes After All – A Compromise is in the Air

Posted in Legislation, Non-Compete Enforceability, Trade Secrets

There are signs that the debate over whether to ban non-competes may end in a compromise, a result many, including this blog, have predicted.

As we reported in Friday’s post, the Joint Committee on Economic Development and Emerging Technologies held a public hearing yesterday at the Statehouse on HB4802, which would adopt the Uniform Trade Secrets Act (“UTSA”), … Continue Reading

Another Public Hearing Scheduled for Massachusetts Non-Compete Bill: What’s Next?

Posted in Legislation, Non-Compete Enforceability, Trade Secrets

We reported in our post of June 11th that Governor Patrick had introduced a sweeping economic growth bill (HB4045) — that, if passed, would ban employee non-competes in the Commonwealth. We also explained that subsequent to Governor Patrick’s bill, another bill (HB4082), was introduced that stripped Governor’s Patrick’s bill and left only those portions dealing with trade secrets … Continue Reading

Upcoming On-Demand Webinar: International Trade Secrets and Non-Compete Law Update

Posted in International, Non-Compete Enforceability, Trade Secrets

To accommodate our global audience, the fifth installment in the 2014 Trade Secrets Webinar Series will be available as an on-demand broadcast on Thursday, July 31, 2014 at 9:00 a.m. Central. Please register to receive access to the broadcast.

Seyfarth attorneys Wan Li, Ming Henderson, Justine Turnbull and Daniel Hart  will focus on non-compete and trade secret considerations from an … Continue Reading

Webinar Recap! Trade Secret and Non-Compete Legislative Update

Posted in International, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

We are pleased to announce the webinar “Trade Secret and Non-Compete Legislative Update” is now available as a podcast and webinar recording.

In Seyfarth’s fourth installment of its 2014 Trade Secrets Webinar series, Seyfarth attorneys discussed the significant changes to several laws regarding trade secrets,  restrictive covenants, and social media, as well as proposed legislation pending in other jurisdictions.… Continue Reading

Enforcing Non-Compete Agreements in the Pharmaceutical Industry

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

Employee mobility in the pharmaceutical industry is a significant concern for employers given the industry’s very significant investment in and reliance upon generating and protecting confidential, proprietary and trade secret information that is used to develop products and create and maintain customer relationships.

Non-competition and customer non-solicitation agreements are one of the primary tools available in most states to protect … Continue Reading

Divided Appellate Court Voids Employer’s Non-Compete Covenants Because One Employee Did Not Sign

Posted in Non-Compete Enforceability, Restrictive Covenants

In a decision marked not-for-publication, a Minnesota Appeals Court affirmed the trial court’s invalidation of a two-year non-competition agreement signed by a long time employee.  He was discharged 11 years after he signed.  He then went to work for a competitor of his former employer.  The majority reasoned that the non-compete lacked independent consideration since it was not executed by … Continue Reading

Inching Closer to California: An Update on Massachusetts Non-Compete Legislation

Posted in Legislation, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

As we have previously reported, in April of this year, Massachusetts Governor Deval Patrick introduced a sweeping economic growth bill (HB4045) that, if passed, would ban employee non-competes in the Commonwealth.  The bill has taken a somewhat convoluted path to date, and we wanted to update you on some notable twists and turns.

First, in mid-May, yet another bill … Continue Reading