Non-Compete Agreements

[SAW & MJP]

Western New York: I was the office administrator of a small digital product company, I left the company 6 months ago due to the caotic and hostile environment, 2 other employees left at the same time. Recently the programmer left her position for the same reasons. We want to start our own business producing similar products and providing similar services as well as many original products and services. If we were never asked to sign a non-compete agreement (or any agreement) when we were hired, can we be sued for starting our own business using the same software for product development and marketing to companies that may have an interest in similar products but do not have contracts with our former employer and never did? If we were to use a different software to develop our products and services would that be enough to protect us from his threats of litigation?

 

[ALawyer]

If you do not have a non-compete, whether you signed it at the time of being hired or later, then you can't be sued for breaching it.

So my concern as a lawyer would be if the old employer alleged that you are using his trade secrets. And that is a matter of factual inquiry.

The other concern I could have is if everyone left at once as some sort of conspiracy to harm the firm, as I recall NY had some old case law on that. But that does not seem to be the case here.

Last is interfering with contractual relationships, but, heck that's what competition is all about, so long as there are no other wrongs.

If you guys are setting up what you hope will become a successful business, get some legal help up front to help you avoid the landmines -- it is a lot cheaper than getting into trouble -- and you can always say you acted on advice of counsel -- and the advice the real local lawyer gives you will save you lots of time and aggravation too.

 

[I AM ALWAYS LIABLE]

My response:

If you're looking for a success story, with people just like yourselves, and in a similar situation, then you'll be interested to read about the former employees of WordPerfect Corporation, and what they did to create "Word Place, Corporation" - - makers of a new wordprocessing program called "Yeah, Write".

It's a good story, and one that should give you guys some hope.

http://fitnesoft.com/AlmostPerfect/


Good luck to all of you,

IAAL