By: James Kachmar Readers of this blog will note that we frequently remind them that California law generally prohibits non-compete agreements. There are very limited exceptions to this general rule, one being that the seller of goodwill in a business can be bound by a valid non-compete agreement to protect the goodwill that is being purchased. Sometimes,… Continue Reading
Category Archives: Trade Secrets and Competition
Subscribe to Trade Secrets and Competition RSS FeedUPCOMING SEMINAR: Protecting Trade Secrets – How to Manage Employee Use of Proprietary Information
Posted in Employment Contracts and Agreements, Labor Law, Trade Secrets and CompetitionThursday, May 17, 2012 9:00 a.m. – Registration and Breakfast 9:30 a.m. – 11:30 a.m. – Program 400 Capitol Mall, 11th Floor, Sacramento, CA Can You Keep a Secret? From trade secrets like product recipes and algorithms to confidential details about financing, customers and costs, all businesses have information that could be devastating if it… Continue Reading
Weintraub’s L&E Law Blog is in the Top 25
Posted in Disability Discrimination, Discrimination, Employee Privacy Rights, Employment Contracts and Agreements, FMLA and Other Leaves of Absence, Harassment, Labor Law, New Legislation and Regulations, Reductions in Force, Retaliation and Wrongful Termination, Trade Secrets and Competition, Wage & HourBy: Chuck Post Over the last year, Weintraub Genshlea Chediak Tobin & Tobin has tripled the size of its employment law department. In addition to enhancing the services we can provide to our clients, this growth has allowed us to continue presenting our quality seminars and maintaining our Labor and Employment Law Blog. Our results… Continue Reading
Vote for Weintraub’s L&E Law Blog!
Posted in Disability Discrimination, Discrimination, Employee Privacy Rights, Employment Contracts and Agreements, FMLA and Other Leaves of Absence, Harassment, Labor Law, New Legislation and Regulations, Reductions in Force, Retaliation and Wrongful Termination, Trade Secrets and Competition, Wage & HourBig news! Weintraub’s L&E Law Blog is one of the nominated candidates for the LexisNexis Top 25 Labor and Employment Law Blogs of 2011. We need your help! Click here, log onto the Labor and Employment Law Community and then leave a comment at the bottom of the page saying “I vote for The Labor &… Continue Reading
LAW ALERT: Employee Didn’t Improperly Access Employer’s Computer Ninth Circuit Rules on What Is and What Is Not “Authorization” under the Federal Computer Fraud and Abuse Act
Posted in Trade Secrets and CompetitionIn LVRC Holdings, LLC v. Brekka, et. al. (9/15/09), the Ninth Circuit Court of Appeals upheld the trial court’s summary judgment for defendants finding that defendant, Brekka, was “authorized” to use LVRC’s computers while he was employed, and that he did not access the computers “without authorization” under the Federal Computer Fraud and Abuse Act… Continue Reading
TRADE SECRETS AND PREEMPTION
Posted in Trade Secrets and CompetitionAlthough several federal courts in California have previously considered the issue of preemption in trade secret misappropriation cases, the Sixth Appellate District, in K.C. Multimedia, Inc. v. Bank of America Technology & Operations, Inc. ___ Cal.Rptr. 3d ____ (6th Dist. Mar. 3, 2009), became one of the first (if not the first) California state… Continue Reading
Edwards v. Arthur Andersen LLP: The Death of Non-Competition Agreements?
Posted in Employment Contracts and Agreements, Trade Secrets and CompetitionIn VL Systems, Inc. v. Unison, Inc., the Court of Appeal struck down a “no hire” provision contained in a consulting agreement as violating section 16600 of California’s Business and Professions Code. Section 16600 provides “Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade… Continue Reading
Caution Regarding “No-Hire” Provisions
Posted in Employment Contracts and Agreements, Trade Secrets and CompetitionBusinesses, especially consultants, frequently include a no-hire provision in connection with service or consulting agreements. These provisions are usually intended to prevent the client from soliciting or hiring away the consulting company’s employees. No-hire provisions have two primary goals: First, to protect the employees of one business from being recruited away by the companies they… Continue Reading
Third Party Trade Secret Misappropriation and the Statute of Limitations
Posted in Employment Contracts and Agreements, Trade Secrets and CompetitionCypress Semiconductor Corporation
Non-Compete Agreements Were Unenforceable: Asset Mktg. Systems, Inc. v. Gagnon (9th Cir. 2008)
Posted in Trade Secrets and CompetitionKevin Gagnon, doing business as “Mister Computer,” alleged that his former customer, Asset Marketing Systems (AMS), infringed his copyright in six computer programs that he wrote for AMS by continuing to use and modify them without his consent and that AMS misappropriated trade secrets contained in the programs’ source code. After AMS terminated its contract… Continue Reading
California Supreme Court Rejects Contracts Restricting Former Employee’s Ability To Solicit Customers: Edwards v. Arthur Andersen, LLP
Posted in Trade Secrets and CompetitionIn Edwards v. Arthur Andersen, LLP, Case No. BC294853 (August 7, 2008) the California Supreme Court holds that non-solicitation of customer agreements are per se unenforceable unless they fall within the statutory or other exception permitted under the law. California law has long protected the rights of employees to lawfully pursue any trade or profession…. Continue Reading
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