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Category Archives: Other Restrictive Covenants

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Two Things You Can Do To Reduce the Likelihood That Your Company Will Be Found Liable For Conspiring Or Aiding And Abetting In An Employee’s Breach of Duty To A Former Employer

Posted in Breach of Fiduciary Duty/Duty of Loyalty, Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Employee Raids, Hiring a Competitor’s Employees, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

When companies sue their former employees for theft they often claim that the former employee’s new employer has conspired with the former employee to misappropriate trade secrets, or that that new employer has aided and abetted the former employee’s breach of duty he/she owed to his/her former employer. Like Woodward and Bernstein, liability “follows the… Continue Reading

Senate and House of Representatives Pass the Defend Trade Secrets Act

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Employee Raids, Hiring a Competitor’s Employees, New Legislation, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

Senate and House of Representatives Pass the Defend Trade Secrets Act (DTSA).  First federal trade secret bill awaiting presidential signature.  More details can be found at the following Forbes article:  “The New Defend Trade Secrets Act is the Biggest IP Development in Years,” dated April 28, 2016.

California Court Confirms No Absolute Public Policy Against Non-Competes Entered into by Partners

Posted in Covenants Not to Compete in California, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

California’s prohibition on non-competition agreements is less than absolute.  For example, non-compete agreements may be enforced against partners or sellers of businesses.  Additionally, in SingerLewak LLP v. Andrew Gantman (2015) 241 Cal.App.4th 610, a California Appellate Court affirmed an arbitration award that would be considered by most to be a misapplication of California’s non-competition law…. Continue Reading

Tech Companies Reach New Settlement in Anti-Poaching Cases

Posted in Covenants Not to Compete in California, Hiring a Competitor’s Employees, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

This blog has previously reported on the anti-poaching cases involving various tech companies in Silicon Valley.  The cases arise out of alleged agreements between various tech companies not to recruit each other’s employees.  The U.S. Department of Justice brought antitrust actions as a result of these alleged agreements which resulted in the companies entering into… Continue Reading

High Stakes High Tech Drama: Why Companies with Millions of Users Are Concerned About A Class Action Lawsuit By Thousands of Workers

Posted in Hiring a Competitor’s Employees, Other Restrictive Covenants

As you will recall from previous posts, a large high tech antitrust class action is being waged in California that has major implications for employer non-solicitation agreements.  Questions regarding agreements between employers that impact employee mobility are being addressed in this lawsuit against the backdrop of antitrust allegations. High-Tech Employee Mobility Antitrust Class Action: Background… Continue Reading