Section 16601 of the California Business and Professions Code provides a well-known exception to California’s statutory refusal to enforce contractual commitments not to compete. Under that section, Courts will enforce “reasonable” restrictions on the seller of a business to engage in competition against the buyer of that business. This is a commonsense approach: a buyer
trade secrets
Employers: Act Fast or Weaken Your Trade Secret Case
When one or more of your key employees leaves to join a competitor and begins soliciting your customers, one of your strongest weapons under California’s trade secret laws is the ability to obtain an immediate temporary restraining order to stop your former employee and his or new employer from unlawfully competing against you. Many trade…
Employers: Act Fast or Weaken Your Trade Secret Case
By: James Kachmar
When one or more of your key employees leaves to join a competitor and begins soliciting your customers, one of your strongest weapons under California’s trade secret laws is the ability to obtain an immediate temporary restraining order to stop your former employee and his or new employer from unlawfully competing against you. Many trade secrets cases can be won or lost at the early TRO/preliminary injunction stage. However, it is imperative that employers act fast to protect their rights or they may find that their trade secret case is weakened. Employers may, when faced with departing employees who are soliciting their customers, take a wait and see approach to determine the amount of damage and whether it is worthwhile to hire an attorney to pursue the matter in the court system. While this may make sense from a business approach, it can adversely impact the employer’s remedies should it eventually decide to pursue a lawsuit.Continue Reading Employers: Act Fast or Weaken Your Trade Secret Case
Trade Secret Preemption Revisited
This blog has periodically visited the issue of preemption in trade secret cases. Preemption arises when a plaintiff alleges common law causes of action (such as conversion or interference with economic relations) with a trade secret misappropriation claim that is based on the “same nucleus of facts.” California courts have repeatedly held that California’s Uniform…
Upcoming Seminar: Protecting Trade Secrets – How to Manage Employee Use of Proprietary Information
Thursday, 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…