Re: Non-compete Clauses

At 04:40 PM 1/24/00 -0600, you wrote:
>Anyone ever dealt with non-compete clauses in signing a contract with a 
>client?
>In some aspects I can understand the client requesting this, but on the other
>hand, I'm not really comfortable with the idea.
>
>Any pros or cons would be appreciated.

Since I've got one of these sitting on my desk awaiting my signature . . .

On one hand it seems like a restriction on my right to seek employment with 
whomever I please!  If I get a better offer across the street, can they 
really prevent me from taking it?  How can one advance within the 
industry?  Just what are we signing away?  Okay, those are questions not 
answers, but they are still the nagging doubts that swirl around this.

On the other hand, I think it depends largely on how broadly or narrowly 
the non-compete agreements are interpreted.  If it is really just confined 
to what we might call "unfair" competition, then I have less of a problem 
with it.  This would include things like using insider or proprietary 
information to gain an advantage, soliciting clients, or otherwise using 
ones position with that company in a way that would cause them harm.  And, 
I think it is this last consideration that is key -- unless they can show 
that they are materially injured in some way by your "competition," I don't 
think there is much that can be enforced.

I, too, would like to hear from someone who has been through this, or 
someone who knows the actual legalities of these things.

Larry Wilson

HTML: hwg-business mailing list archives, maintained by Webmasters @ IWA