In Texas, a 5 to 10 year non-compete agreement related to a sale of business is the norm. n addition to the non-compete restrictions in the sale documents, those sellers who stay employed by the buyer after the sale often sign a second non-compete agreement as part of their employment package, which does not kick in until after their employment with the buyer terminates.
Since trade secrets are not registered with the government, like patents or trademarks, companies must take proactive measures to preserve them. Those who fail to take reasonable measures, risk finding out down the road (usually in court, when the try to recover stolen trade secrets from a rogue employee) that their information has lost its trade secrets status.
Anyone who has been running a business for a while knows that January is a high turnover month for employees. And while companies cannot prevent
What distinguishes those companies that are successful in enforcing their non-compete agreements from those that are not? Generally speaking, just three factors: good agreements, evidence of violations, and swift action to enforce.
The Fifth Circuit Court of Appeals recently ruled that: (1) a party must “prevail” before it can recover any attorney’s fees under the Defend Trade Secrets Act and (2) a plaintiff’s dismissal of its claims without prejudice does not confer the “prevailing party” status on defendants.
Every business should take at least the following steps to protect its trade secrets: (1) have employees sign non-competition / non-solicitation and confidentiality agreements and (2) turn on proper security features on all document management systems and databases, such as Google Share Drive, Microsoft 365, Dropbox, etc., and any databases used by the business.