Sometimes it snows in April, and sometimes – but not too frequently – Congress is actually able to pass legislation that will become law. This happened recently when the House passed the Defend Trade Secrets Act of 2016 on April 27, 2016. It is expected that President Obama will sign the bill into law.
Non-Competition and Confidentiality
Is Continued Employment Sufficient Consideration For a Noncompete Agreement in Wisconsin?
Yes, the Wisconsin Supreme Court recently held that continued at-will employment is sufficient consideration for a noncompete agreement.
In Runzheimer International, Ltd., v. David Friedlen and Corporate Reimbursement Services, Inc., the Wisconsin Supreme Court resolved an issue that was previously unclear under Wisconsin law. 2015 WI 45 (Wis. Apr. 30, 2015). The key holding…
Why You Wanna Treat Me So Bad? – Prince Gets Sued For Tortious Interference With Contract
A new lawsuit in New York challenges Prince’s classic lyric in Purple Rain that “Baby I could never steal you from another.”
According to the lawsuit, Prince recently recorded, produced, and released a new album for free from his protégé, former Voice contestant Judith Hill. But controversy arrived faster than a little red…
When Is Advice of Counsel A Valid Defense To A Claim For Tortious Interference?
The Minnesota Supreme Court recently published a decision that clarifies when advice of counsel can provide a defense to a claim for tortious interference with contract.
In Sysdyne Corp. v. Rousslang et al., Sysdyne sued a company named Xigent Solutions, LLC for hiring a former employee who was subject to a noncompete agreement…
Ten Ways To Maintain the Secrecy of Trade Secrets
One of the requirements for information to qualify as a trade secret is that the information must be “the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Here are ten ways that employers can maintain the secrecy of trade secrets:
- Physical Protections: Keep trade secrets in a locked room, cabinet,
…
When Are Non-Compete Agreements Enforceable In Minnesota?
Non-compete agreements are enforceable in Minnesota when the restrictions are reasonably necessary to protect the employer’s legitimate interests, such as the company’s goodwill, trade secrets, or confidential information.
Whether the restrictions in a non-compete agreement are reasonable depends on the nature and extent of the business, the nature and extent of the service of the…
How To Protect An Employer's Intellectual Property
There are a variety of options that employers can use to protect against employee misuse of their intellectual property. Some of them automatically apply to employees as a matter of law, but others need to be negotiated as a matter of contract. In addition to the protections available under patent and trademark law, here are…
Noncompetes for Existing Employees in Minnesota and Wisconsin
Employees are often asked to sign a noncompete agreement as part of the hiring process. In that circumstance, the consideration offered by the employer to make the agreement enforceable is generally the job itself. But the job itself may not be sufficient for existing employees.
Occasionally, employers will present an existing employee with a noncompete…
Minnesota Court Declines to “Blue-Pencil” Noncompete Agreement
The Minnesota Federal District Court recently reviewed an employee’s noncompete agreement and determined its terms were unenforceably vague and over broad. See Gavaras v. Greenspring Media, LLC, et. al., Civil No. 13-3566 (D. Minn., Jan. 13, 2014). The terms of the seventeen year old agreement (the company had been sold twice since that time)…
Potential Legislation Continues to Threaten Non-Competes in Minnesota
Last February, Representative Joe Atkins introduced a bill, HF 506, which, if passed, would prohibit noncompete agreements in Minnesota. This bill was recently the subject of discussion at a Minnesota House Commerce and Consumer Protection Finance and Policy committee hearing on August 29, 2013. Currently, California and North Dakota are the only other two…