Header graphic for print
Trading Secrets A Law Blog on Trade Secrets, Non-Competes, and Computer Fraud

Category Archives: Non-Compete Enforceability

Subscribe to Non-Compete Enforceability RSS Feed

Upcoming Webinar: 2015 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete and Computer Fraud Law

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

On Friday, January 29, 2016 at 12:00 p.m. Central, Seyfarth attorneys Michael Wexler, Robert Milligan and Joshua Salinas will present the first installment of the 2016 Trade Secrets Webinar series. The presenters will review noteworthy cases and other legal developments from across the nation this past year in the areas of trade secrets and data theft, non-competes and other restrictive … Continue Reading

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2015

Posted in Computer Fraud and Abuse Act, Legislation, Non-Compete Enforceability, Trade Secrets

Continuing our tradition of presenting annually our thoughts concerning the top 10 developments/headlines this past year in trade secret, computer fraud, and non-compete law, here—in no particular order—is our listing for 2015 and a few predictions for 2016.  Please join us for our first webinar of the New Year on January 29, 2016 discussing these developments/headlines.

1) Enactment of federal … Continue Reading

Restraint Payments in Australia – Compliance Issues

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

In the latest of our series of post-employment protection blog posts, we consider the compliance and regulatory issues that need to be thought through when drafting an effective post-employment restraint in Australia.

How will any restraint payment be structured?

The threshold question is what kind of payment (if any) to make in return for the agreement of an employee not … Continue Reading

Drafting and Litigating Post-Employment Restrictive Covenants in Australia – Tailoring Your Restraint to Ensure the Right Fit

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

By Michael Tamvakologos and Justine Giuliani

We will now look at the different types of post-employment restrictive covenants, and work through a checklist of questions employers should ask themselves when drafting a restraint to make sure it’s the right fit.

A good restraint is not about creating the ultimate “catch all” provision. Rather, it requires a series of good choices … Continue Reading

Best Practices Shared in Seyfarth Shaw’s 2015 Trade Secrets Webinar Series Year in Review

Posted in International, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Social Media, Trade Secrets

Throughout 2015, Seyfarth Shaw’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever-changing area of law. The series consisted of nine webinars:

2014 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete and Computer… Continue Reading

Australia Non-Compete Update: the Difference Between Winning and Losing Restraint Litigation is Often Good Housekeeping

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

By Michael Tamvakologos and Justine Giuliani

An enforceable restraint of trade can be a key business asset. Or some might think about it as an insurance policy. The capacity to preserve customer connections, protect confidential information and discourage key executives from setting up their own business or moving to a competitor can be critical to information rich businesses operating in … Continue Reading

Texas Federal Court Rules “Anti-Competitive” Employment Covenants Do Not Raise Federal Antitrust Question

Posted in Non-Compete Enforceability, Practice & Procedure

In a case solely comprised of state-law claims to enforce employment covenants, a United States District Judge in the North District of Texas ruled last week in Leica Microsystems Inc. v. Hernandez et al., No. 3:15-CV-2531-D, 2015 WL 7424770 (Nov. 23, 2015) that a defendant’s characterization of the plaintiff’s complaint as conduct violating federal antitrust laws was insufficient to establish … Continue Reading

Webinar Recap! Enforcing Non-Compete Provisions in Franchise Agreements

Posted in Non-Compete Enforceability, Trade Secrets

Happy Thanksgiving. As a thank you to our valued readers, we are pleased to announce the webinar “Enforcing Non-Compete Provisions in Franchise Agreements” is now available as a podcast and webinar recording.

In Seyfarth’s ninth and final installment in its series of Trade Secrets Webinars,  Seyfarth attorneys John Skelton, Erik Weibust and Anne Dunne focused on how to implement … Continue Reading

Pennsylvania Supreme Court Rules That Continued Employment Is Not Sufficient Consideration for Non-Competes Entered Into After the Employment Relationship Has Begun

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

In a landmark ruling of first impression, the Pennsylvania Supreme Court recently held that an employer’s non-competition covenant, which included the employee’s pledge not to challenge the covenant for inadequate consideration, is unenforceable unless it is accompanied by a change in job status or some other significant benefit.  Socko v. Mid-Atlantic Systems of CPA, Inc., Case No. 3-40-2015 (Nov. 18, Continue Reading

Do Non-Competes Really Stifle Tech Innovation?

Posted in Non-Compete Enforceability, Trade Secrets

As has been well-chronicled in this blog, Massachusetts and many other states (and even the federal government) have been grappling with proposed legislation that would ban or severely limit non-competes in employment contracts.  Proponents of bans on non-competes claim that they stifle innovation in the technology sector by preventing skilled employees from using their unique talents to start … Continue Reading

Trend In The Courts: It’s Getting Harder To Obtain Preliminary Injunctions In Restrictive Covenant Cases

Posted in Non-Compete Enforceability, Practice & Procedure

In recent weeks, courts almost routinely have been denying preliminary injunctive relief in cases alleging violation of non-compete and similar employment agreements.  Three examples: Burleigh v. Center Point Contractors, 2015 Ark. App. 615 (Oct. 28, 2015); Evans v. Generic Solution Engineering, LLC, Case No. 5D15-578 (Fla. App., Oct. 30, 2015); and Great Lakes Home Health Services Inc. v. Continue Reading

Upcoming Webinar: Enforcing Non-Compete Provisions in Franchise Agreements

Posted in Non-Compete Enforceability, Trade Secrets

On Thursday, November 19, 2015 at 12:00 p.m. Central, Seyfarth attorneys John Skelton, Erik Weibust and Anne Dunne will present the ninth and final installment of its 2015 Trade Secrets Webinar series, Seyfarth attorneys will focus on how to implement and enforce covenants against competition in the franchise context. A franchisor’s trade secrets, confidential information, and goodwill are often … Continue Reading

Upcoming Webinar: So You Want an Injunction in a Non-Compete or Trade Secret Case?

Posted in Non-Compete Enforceability, Trade Secrets

On Thursday, September 24 at 12:00 p.m. Central, Seyfarth attorneys Eric Barton, Justin K. Beyer and Robert C. Stevens will present the seventh installment in its series of 2015 Trade Secret Webinars. Presenters will focus on the issues confronting plaintiffs in preparing for and prosecuting trade secret cases and the various ins and outs of seeking both temporary restraining orders … Continue Reading

Webinar Recap! State Specific Non-Compete Oddities Employers Should Be Aware Of

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

We are pleased to announce the webinar “State Specific Non-Compete Oddities Employers Should Be Aware Of ” is now available as a podcast and webinar recording.

In Seyfarth’s sixth installment, attorneys Michael Baniak and Paul Freehling discussed the significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and pending legislation proposed in additional jurisdictions over … Continue Reading

Effective Carve-Outs to Seek Injunctive Relief from the Court in Arbitration Provisions

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

Christopher Pike: “That’s a technicality.”

Spock: “I am a [lawyer], sir. We embrace technicalities.”

Star Trek Into Darkness

Arbitration is no longer the final frontier. Instead, arbitration is often the first and only forum for resolving disputes. The business community has embraced arbitration as an alternative method of dispute resolution, but sophisticated parties still maintain a preference favoring court resolution … Continue Reading

Court Decries Ambiguity Of Terminology Used In Non-Compete Agreement And Injunction

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

A preliminary injunction was entered against a fired executive of a roofer who, immediately after he was discharged, went to work for an alleged competitor.  The district court held, and the Seventh Circuit agreed, that his non-compete and non-solicit agreements were overbroad and confusing, but that some injunctive relief nonetheless was warranted in this case.  Turnell v. CentiMark Corp., … Continue Reading

Robert B. Milligan to Speak at 2015 ABA Annual Meeting on Trade Secret and Non-Compete Developments

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

Join Seyfarth Trade Secrets and Non-Compete Co-Chair Robert B. Milligan at the 2015 ABA-IPL Annual Meeting in Chicago on July 30, 2015.  Robert will join expert panelists to discuss significant statutory changes to several jurisdictions’ laws regarding restrictive covenants and pending legislation proposed in additional jurisdictions over the past year, as well as the ongoing effort to federalize trade secret … Continue Reading

No Economic Recovery Available For Breach Of A Non-Compete Set Forth In A Distributorship Agreement Which Bars Damages Awards

Posted in Non-Compete Enforceability, Practice & Procedure

Where a freely negotiated contract between two sophisticated companies included a provision barring an award of monetary relief for breach of contract, the court will enforce the provision as written and award no economic damages.  CH2O, Inc. v. Meras Engineering, Inc., No. 45728-8-II (Wash. App. Court, July 21, 2015) (unpublished opinion).

Status of the Case

A non-exclusive distributorship agreement … Continue Reading

Upcoming Webinar: State Specific Non-Compete Oddities Employers Should Be Aware Of

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

On Tuesday, August 18, 2015 at 12:00 p.m. Central, Kate Perrelli, Eddy Salcedo and Dawn Mertineit will present the sixth installment in our 2015 Trade Secrets Webinar Series. They will discuss the significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and pending legislation proposed in additional jurisdictions over the past year.  As trade secrets and … Continue Reading

Sales Of $8,000 Stemming From Trade Secret Misappropriation Results In Liability For $1.3 Million

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

At a time when an ex-employee’s newly created company was subject to an injunction prohibiting misappropriation of his former employer’s supposed trade secret, the new company allegedly used that confidential information on a few occasions in the course of providing services.  The former employer sued.  Although the trial court found no violation of the injunction, that ruling was reversed on … Continue Reading

50 State Non-Compete and Trade Secret Desktop Reference

Posted in Non-Compete Enforceability, Trade Secrets

Seyfarth Offers 2015-2016 Edition of 50 State Desktop Reference: 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 non-competition and non-solicitation agreements, as well as the protection of proprietary information. All too often, what is enforceable in … Continue Reading

Alabama Revises Non-Compete Statute In Effort to Provide Additional Clarity

Posted in Legislation, Non-Compete Enforceability

On June 11, 2015, Alabama’s Governor signed into law legislation that revises the state’s non-compete statute, which is found in Section 8-1-1 of the Code of Alabama.  The effective date for these changes is January 1, 2016.  As summarized below, these revisions represent the Alabama legislature’s attempt to “clarity” portions of the non-compete statute by codifying several recent judicial decisions … Continue Reading

Non-Compete Injunction Denied, Ninth Circuit Remands For Reconsideration, But District Court Denies It Again, Declines Equitable Tolling

Posted in Non-Compete Enforceability, Practice & Procedure

As directed by the court of appeals, a district court judge reconsidered his denial of a non-compete covenant case injunction but reached the same result on reconsideration.  He also stated why he would not have extended the covenant’s expiration date even if he had been inclined to enter the injunction.  Ocean Beauty Seafoods LLC v. Pacific Seafood Group Acquisition Co., … Continue Reading

Hawaii Bans Non-Compete and Non-Solicit Agreements with Technology Workers

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

Hawaii joined the small list of states that prohibit certain non-compete agreements with employees.

On June 26, 2015, Hawaii’s governor David Ige signed Act 158 which voids any “noncompete clause or a nonsolicit clause in any employment contract relating to an employee of a technology business.”

The Act defines “technology business” as one that “derives the majority of its gross … Continue Reading