To Compete or Non-Compete
I was going to post some practical information about the effect and validity of non-compete agreements in California (they’re generally not enforceable) and alternatives that California businesses have to non-compete agreements to protect their businesses from employees who go to work for competitors (hint: it has to do with confidentiality agreements and non-disclosure agreements–which are enforceable), but there is an interesting exchange occurring right now on the net regarding overall policy relating to non-compete agreements which was started by some comments of Bijan Sabet last weekend (Mr. Sabet is a partner at Spark Capital in Boston, Mass.).
Essentially, the invalidity of non-compete agreements in California has been a source of consternation for many business owners trying to protect their businesses from employees leaving for competitors. On the flip side, proponents of non-competes have pointed to the explosion of businesses and technology in Silicon Valley as evidence that the California legislature got it right when they invalidated the non-compete agreement because of its function as a barrier to free markets. So who’s right? Continue reading →
December 7, 2007 Posted by Benjamin C. Johnson | confidentiality agreement, Intellectual Property, non-compete agreement, non-disclosure agreement, Trade Secrets | Alliance for Open Competition, barriers to free markets, Bijan Sabet, Boston, competition, employees, Fred Wilson, free market, Mike Masnick, Silicon Valley, Spark Capital, technology | Leave a comment
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The Trade Secrets Blog is published by Benjamin C. Johnson, Esq.
Mr. Johnson is an attorney at the Boesch Law Group, a Santa Monica, California law firm noted for receiving the “Number 1 Judgment in the Nation” according to US Lawyers Weekly. You can visit the website at www.boeschlawgroup.com for more information.
Mr. Johnson focuses his practice on trade secrets litigation and closely follows new developments in the law as they pertain to the field of trade secrets, copyrights, trademarks and patents.
If you are involved in trade secret litigation or would like to improve your trade secret protection strategies, please contact Mr. Johnson for a free consultation.
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