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Trading Secrets A Law Blog on Trade Secrets, Non-Competes, and Computer Fraud

Tag Archives: non-competes

Two New England States Pass Legislation Restricting Physician Non-Competes

Posted in Legislation, Non-Compete Enforceability

We’ve written a lot this summer about the Massachusetts legislature’s latest failed attempt at non-compete reform. Two other states in New England, however, are able to claim accomplishments in that regard. Specifically, Connecticut and Rhode Island each enacted statutes this summer imposing significant restrictions on the use of non-compete provisions in any agreement that establishes employment or any other form … Continue Reading

In Like A Lion, Out Like A Lamb: Following Much Fanfare, Massachusetts Noncompete Reform Again Fails

Posted in Legislation, Non-Compete Enforceability

In what has become a highly anticipated annual game of “Will They/Won’t They,” the Massachusetts legislature again failed to pass comprehensive noncompete reform legislation this year, despite much fanfare and high hopes from certain quarters. This should come as no surprise to our loyal readers, who have seen this happen virtually every year over the past decade, but it … Continue Reading

Massachusetts Governor Supports Noncompete Reform, But Not Abolition

Posted in Legislation, Non-Compete Enforceability, Trade Secrets

According to The Boston Globe, Massachusetts Governor Charlie Baker has publicly voiced his support for some restrictions on noncompete agreements, but he does not want to abolish them entirely. Specifically, Governor Baker supports the bill passed by the Massachusetts House of Representatives (discussed previously here), but not the far more restrictive bill passed by the Massachusetts Senate (discussed … Continue Reading

Upcoming Webinar: International Non-Compete Law Update

Posted in International, Trade Secrets

On Thursday, July 28, at 12:00 p.m. Central, Seyfarth attorney Dominic Hodson will present “International Non-Compete Law Update,” the eighth installment in Seyfarth’s 2016 Trade Secrets Webinar series.

Mr. Hodson will focus on non-compete considerations from an international perspective. Specifically, the webinar will involve a discussion of recent developments, and a refresher in general principals, in non-compete issues around the … 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

Neglect of Cloud Computing Policies In Workplace Can Provide Perfect Storm for Trade Secret Theft

Posted in Cybersecurity, Data Theft, Privacy, Trade Secrets

By Robert Milligan, Jessica Mendelson, and Joshua Salinas

Prudent employers are often looking for areas in their business where valuable company data  may not be adequately protected.

Enter the growing prevalence of third party online data storage for professional and personal use in the workplace, coupled with the increasing accessibility provided by employers to access company data remotely.

While … Continue Reading

Upcoming Complimentary Webinar: Trade Secret and Non-Compete Considerations in Asia

Posted in International, Practice & Procedure, Restrictive Covenants, Trade Secrets

To accommodate our global audience, Seyfarth’s eighth installment in its 2013 Trade Secrets Webinar Series will be available as an on-demand broadcast this month! On Tuesday, August 27, 2013, Seyfarth attorneys Dominic Hodson, Wan Li, and Robert Milligan will discuss non-compete and trade secret issues in China, including best practices to protect trade secrets and confidential information in the country. … Continue Reading

California Federal Court Allows Non-Signatory to Arbitration Agreement to Compel Arbitration in Trade Secrets Dispute

Posted in Computer Fraud and Abuse Act, Restrictive Covenants, Trade Secrets

A federal district court in the Northern District of California recently found that a non-signatory to an arbitration agreement may enforce that agreement against a signatory and compel arbitration under the doctrine of equitable estoppel.

Semin, a software developer, worked for Torbit, Inc. He signed an employment agreement containing a proprietary information non-disclosure provision, and a commitment not to compete … Continue Reading

Upcoming Client Webinar on July 11: When Trade Secrets Cross International Borders

Posted in Trade Secrets

The fifth webinar of the 2012 series will focus on non-compete and trade secret considerations from an international perspective. The webinar will provide a high level discussion of recent non-compete and trade secret issues that impact foreign companies conducting business in the United States. This program will provide an overview of the key considerations that foreign companies should appreciate in … Continue Reading

Federal Court Reverses Prior Decision on Retroactive Impact of New Georgia Restrictive Covenant Act

Posted in Non-Compete Enforceability

By Dan Hart

As we have written on this blog before, on May 11, 2011 Georgia reissued its new Restrictive Covenant Act (“New Act”) in order to resolve concerns about the constitutionality and effectiveness of a nearly identical statute that the state’s legislature had previously enacted in 2009. The 2009 version of the statute was contingent on voters’ approval … Continue Reading

Iowa – Sophisticated Employees Bound by Reasonable Restrictive Covenants; Plaintiff to Post $2 Million Bond

Posted in Non-Compete Enforceability

 A recent Iowa U.S. district court decision upheld two-year, geographically reasonable, non-compete agreements signed by 26 veterinarians while they were employed by Iowa Veterinary Specialties, P.C. (IVS), a Des Moines, Iowa clinic they owned. When two of the vets and IVS’s operations manager learned that its sale to ISU Veterinary Services Corporation (VSC) was imminent, they used IVS’s business information and … Continue Reading

Illinois House of Representatives Revisits Non-Compete Statute

Posted in Non-Compete Enforceability

We informed our readers on March 31, 2009 about Illinois House Bill 4040, titled "Illinois Covenants Not to Compete Act" (link). House Bill 4040 attempted to limit non-compete enforcement to employees or independent contractors who:

have substantial involvement in the executive management of the employer’s business; have direct and substantial contact with the employer’s customers; possess knowledge of the… Continue Reading

New Day in Georgia for Restrictive Covenants

Posted in Non-Compete Enforceability

On November 2, Georgians voted overwhelmingly in favor of updating Georgia’s restrictive covenant law. The new law is codified at O.C.G.A. 13-8-50 et seq. 

The law is not retroactive, so it does not affect existing contracts.  However, for many businesses who have learned that their agreements are not enforceable under Georgia law as it existed previously, now is … Continue Reading

Massachusetts Is Not California; At Least Not Yet!

Posted in Non-Compete Enforceability

By Kate Perrelli and Erik Weibust

On October 7, 2009, the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development held a hearing on a non-compete bill, House No. 1799, sponsored by Representatives Will Brownsberger and Lori Ehrlich. Representatives Brownsberger and Ehrlich had each previously sponsored their own independent bills – Brownsberger’s based on California’s statute that bans non-compete agreements altogether, … Continue Reading

Illinois Appellate Court Says Legitimate Business Interest Not Necessary to Enforce a Covenant-Not-To-Compete

Posted in Non-Compete Enforceability

In a landmark decision just issued, the Illinois Appellate Court, Fourth District, ruled that an ex-employer seeking to enforce a covenant-not-to-compete against former sales personnel need only show that the time-and-territory restrictions are reasonable and need not prove, in addition, that there is a sufficient legitimate-business-interest in enforcement. 

In Sunbelt Rentals, Inc. v. Ehlers, No. 4-09-0290 (9/23/09), the appellate … Continue Reading

Nondisclosure Agreement Found to Fall Short Without an Accompanying Non-Compete

Posted in Restrictive Covenants

In the back and forth battle between companies and former employees regarding the confidential nature of customer information, the United States District Court for the District of Nebraska has just issued a decision of note in Softchoice Corp. v. MacKenzie, 08-cv-00249. By the decision, the Court dismissed the action as against the defendant, finding that despite plaintiff’s treatment of the … Continue Reading

New York Federal Court Rejects Attempt to Recast State-Law Trade Secrets and Unfair Competition Claims as Federal Antitrust Claims

Posted in Unfair Competition

Emigra Group, LLC v. Fragomen, Del Rey, Bernsen & Loewy LLP, et al., No. 07 Civ. 10688 (LAK) (S.D.N.Y. Mar. 31, 2009).

In a decision that should be considerable reassurance to employers in general and law firms in particular, a district judge in New York has rejected an antitrust claim brought by a consulting firm against its former employer, … Continue Reading


Posted in Non-Compete Enforceability

April 02, 2009 Daily Journal   Reprinted and/or posted with the permission of Daily Journal Corp. (2009).

By Robert Milligan and Nicholas Waddles

The California Supreme Court’s decision in Edwards v. Arthur Andersen LLP, 44 Cal.4th 937 (2008), reaffirmed that employee non-competition agreements are void in California unless they fall within narrow exceptions to Business and Professions Code Section … Continue Reading

While Illinois Senate Considers Dramatic Alterations to Illinois Trade Secrets Act, Illinois House of Representatives Seeks to Enact Non-Competition Statute

Posted in Non-Compete Enforceability

As discussed in our March 9th  and 17th postings, Illinois Senate Bill SB 2149 seeks to dramatically alter the landscape of trade secret enforcement and litigation in Illinois by, among other things, (a) requiring disclosure of trade secrets before a party issues written or oral discovery; (b) awarding attorneys’ fees to the prevailing party in a trade secrets case; and … Continue Reading

New Hampshire Judge Dissolves Injunction Preventing Former Dell EqualLogic Executive From Working for Competitor

Posted in Non-Compete Enforceability

EqualLogic, Inc. v. Shea, (N.H. Superior Court, Hillsborough County).

In an unusual reversal, a Nashua, New Hampshire judge admitted recently that she had erred in granting a preliminary injunction barring a former executive for computer data storage company EqualLogic from working for a competitor. 

EqualLogic was acquired by computer giant Dell for approximately $1.4 billion shortly before area vice … Continue Reading

Tennessee Court of Appeals Reverses Dismissal of Former Employer’s Complaint Alleging Violations of Non-compete Agreement

Posted in Non-Compete Enforceability

In Southern Fire Analysis v. Rambo, No. M2008-00056-COA-R3-CV, 2009 WL 161088 (Tenn. Ct. App. Jan. 22, 2009), the Tennessee Court of Appeals reversed a trial court’s dismissal of a complaint alleging violations of three non-compete agreements. The facts are as follows:

Plaintiff Southern Fire Analysis is in the business of investigating fires on behalf of insurance company clients. Southern Fire Analysis … Continue Reading

Georgia’s House Study Committee on Restrictive Covenants in the Commercial Arena Issues Final Report

Posted in Restrictive Covenants

Just before the end of 2008, Georgia’s House Study Committee on Restrictive Covenants in the Commercia Arena, chaired by Representative Kevin Levitas, issued its final report, asking for support to “[m]oderniz[e] Georgia law” and to “attract new business to our great state and retain those companies that are already located here.” 

Following two hearings involving testimony and letters from … Continue Reading