Can Someone Steal My Idea and Start a Competing Business?

Full question:

ESTABLISED SRING FOOTBALL LEAGUE 2009 COMMUNICATED INTENTIONS TOPERSONS WHO WERE INTERESTED IN BEING A PART OF MY VENTURE...i WAS SURPRISED TO LEARN THAT SOME THOSE SAME PARTIES WERE USING MY INFORMATION TO START ANOTHER NEW SPRING FOOTBALL RECENTLY...PRIOR TO MY LEAGUE OPENING. ..CAN I FILE AN INJUNCTION??

  • Category: Employment
  • Subcategory: NonCompete Agreement
  • Date:
  • State: Michigan

Answer:

The answer will depend on their relationship to you and whether they owed you a fiduciary duty, such as an agent under a power of attorney or an officer of a company, or had a confidentiality agreement. A business that wants to protect trade secrets, patents, inventions, sales territories, customer lists, and similar confidential business information often find it helpful and desirable to place the terms of the employer-employee relationship in a binding, written employment contract. Noncompete and confidentiality clauses may be used in an agreement with an independent contractor (please see links to forms below).

Confidentiality and non-disclosure agreements are used to impose confidentiality obligations on parties receiving information on materials from disclosing parties which consider such information or material to be confidential. The agreement may contain terms that prohibit the disclosure of confidential information and competition with your business. The employment of the individual is typically considered adequate consideration to make the contract enforceable. If another employer is aware of the agreement and intentionally seeks to interfere with its terms, it may be possible that that employer is liable for damages for intentional interference with a contract.

A court will generally enforce a non-compete agreement if it is reasonable in terms of the restrictions on the employee. It should be limited in time and distance that it covers, so that the employee isn't prevented from earning a living. The agreement may contain terms that prohibit the disclosure of confidential information and solicitation of other employees. The employment of the individual is considered adequate consideration to make the contract enforceable. If another employer is aware of the non-compete agreement and intentionally seeks to interfere with its terms, it may be possible that that employer is liable for damages for intentional interference with a contract.

Courts will enforce non-competition agreements if:

-the employer proves that it has a legitimate business interest to protect by restricting the right to compete against it;

-the restriction on the other party's right to compete is no greater than that necessary to protect the employer's business interest; and

-the covenant not to compete is supported by consideration, meaning that the other party received something in exchange for it.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

For a non-compete agreement to be enforceable, it must be reasonable in duration and geographic scope. Additionally, the employer must have a legitimate business interest that justifies the restrictions. The agreement should also be supported by consideration, such as employment or compensation, to make it legally binding.