Trading Secrets : Trade Secrets Lawyers & Attorneys : Seyfarth Shaw Law Firm : Computer Fraud, Confidentiality Agreements, Corporate Espionage

Georgia moved one step closer this week to amending its Constitution to allow the General Assembly to enact legislation regarding commercially applicable (non-real estate) restrictive covenants.  HR 178  passed out of the House (158 yeas - 12 nays) on Monday, March 22, 2010 and is headed to the Senate.  Word is that it is expected to pass without problem.  The House Resolution provides that it is

A RESOLUTION proposing an amendment to the Constitution so as to allow the enforcement of contracts that restrict competition during or after the term of employment or of a commercial relationship so long as such contracts are reasonable in time, area, and line of business; to provide that courts may modify such contracts to achieve the intent of the contracting parties; to provide for the submission of this amendment for ratification or rejection; and for other purposes.

If passed by the Georgia Senate, the proposed amendment will appear on the general election ballot in November 2010.

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On April 29, 2009, Governor Sonny Perdue signed HB 173, legislation intended to revamp the way that non-compete, non-solicit and non-disclosure agreements are enforced in Georgia. 

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On April 1, 2009, the Georgia Senate passed HB 173 on restrictive covenants.  The vote tally was 45 in favor and 2 opposed.   The legislation will now await Governor Sonny Perdue's signature. 

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Yesterday afternoon, the Georgia House of Representatives passed HB 173, a bill that would set forth a comprehensive statutory framework for interpreting restrictive covenant agreements. The current version of the bill is linked here. The final vote was a resounding 137 in favor and 22 against. HB 173 will now progress to the Georgia Senate for consideration. The bill passed the House on cross-over day, the last day in which a bill can pass one house of the Georgia Assembly in order to be considered by the other.

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HB 173, which we have written about before, heads to a vote before the Georgia House of Representatives today.  The legislation  dramatically changes the way Georgia court's will review restrictive covenants (non-competes, non-solicitation agreements) and fixes the time limit imposed on confidentiality restrictions (eliminating the two-year restriction).  To find out how to reach your State Representative to express your views, click here.  

If the bill does not pass today, it is my understanding that it will not be given any further consideration this session.

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Representative Kevin Levitas's HB 173 is headed for another hearing on Monday at the Georgia Capitol.  It may be up for a vote before the full Judiciary Committee as soon as Tuesday, February 17, 2009.  

Subcommittee chairman Representative Mike Jacobs led the latest hearing on Tuesday, February 10, 2009.  The subcommittee heard support for the bill from Reed Elsevier, Inc. and Gould Hagler, the Executive Director of the Independent Insurance Agents of Georgia, Inc. (who also suggested a few potential modifications) among others.  

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