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In 2024, the Federal Trade Commission (FTC) issued a rule banning most noncompete agreements nationwide. Although enforcement is currently stayed (paused) pending legal challenges, courts and legislatures continue to narrow or eliminate noncompete enforceability—prompting employers to reevaluate how they protect proprietary information and competitive advantage. In response, many employers are turning to trade secret law. […]
It has been ten years since a Jimmy John’s employee leaked a copy of a noncompete agreement that the company required employees (including store-level employees such as sandwich makers and delivery drivers) to sign. The noncompete restricted employees from performing any services for a business which derived more than 10% of its revenue from selling […]
Non-compete agreements, often used to protect business interests by restricting the ability of employees to enter into competition with their former employers, have been a staple in employment contracts for years. As detailed in our previous discussion on non-compete agreements published on March 4, 2024, these agreements are designed to safeguard trade secrets and investments […]
Even if you are in the right when you file a lawsuit against a former employee who admittedly took your trade secrets, sometimes the reward is simply not worth the expense. Here, an employer had a former manager dead to rights in misappropriating trade secrets but still couldn’t get a jury to award a dime. […]
Many individuals—and all businesses—have intellectual property. This includes everything from names and brands, to inventions, software, and works of art. Too often those assets go unprotected. As companies prepare to develop and commercialize a product or idea, it’s important that they understand what is needed to strategically protect their assets. What Is Intellectual Property? Intellectual […]
In a previous post, we discussed the importance of trade secrets to an organization’s ability to successfully compete against others in its industry, as well as the tricky balancing act required to both ensure employees who need it have access to trade secret information and protect that information from misuse. In this post, we discuss […]
While the world held its collective breath last month as search teams desperately looked for a missing submersible carrying five Titanic tourists, news reports began circulating of a former OceanGate director of marine operations who was allegedly fired for raising safety concerns years earlier regarding that same vessel. Sadly, the rescue mission soon turned into […]
Do your employees have the basic training they need to understand why and how to protect your organization’s trade secret information? Trade secrets are intellectual property and confidential information that’s so important to a business’s ability to compete with the rest of the industry that companies place great importance on keeping that information secret. In […]
Many companies accumulate trade secrets, such as pricing schemes, business plans, and production shortcuts, but they don’t want competitors to tap into this private reserve of knowledge. The easiest way for a competitor to obtain these secrets is by hiring one of your key employees. A recent case from the U.S. 5th Circuit Court of […]
As an employer, one of your worst fears may be that a disgruntled or entrepreneurial former employee may try to share your internal operations, documents, or trade secrets. What you can do to protect your business in these situations may not always be clear. This article is meant to help you consider your options when […]