Restrictive Covenants and Confidentiality

Labor and Employment | IP/Trade Secrets

We draft and enforce non-compete, non-solicitation, and confidentiality agreements, helping employers protect competitive interests while respecting employee mobility.

Overview

Protecting Business Interests Through Employee Agreements

Restrictive covenants protect employers' investments in employees, customer relationships, and confidential information. MC Law's practice helps employers design enforceable agreements and enforce or defend them when disputes arise.

Agreement Drafting

We draft non-compete, non-solicitation, non-disclosure, and invention assignment agreements. We tailor agreements to applicable state law, job responsibilities, and legitimate business interests.

Enforceability Analysis Restrictive covenant enforceability varies dramatically by state. We analyze existing agreements for enforceability, advise on enforcement likelihood, and recommend modifications to improve enforceability. Enforcement When former employees violate restrictive covenants, we act quickly. We pursue TROs and preliminary injunctions to stop competitive activity. We seek damages and other relief for covenant violations. Defense We defend employees and their new employers against restrictive covenant claims. We challenge enforceability based on overbreadth, lack of consideration, and other grounds. State Law Developments Restrictive covenant law is evolving rapidly with several states banning or limiting non-competes. We monitor legal developments and advise clients on compliance with new restrictions. Trade Secret Intersection Restrictive covenants often intersect with trade secret protection. We coordinate covenant enforcement with trade secret claims to maximize protection of confidential information.

Frequently Asked Questions

Restrictive covenants are contractual provisions that limit employee activities after separation, including non-compete agreements, non-solicitation clauses covering clients and employees, and confidentiality obligations regarding proprietary information.

Enforceability requires reasonable scope in duration, geography, and activity restrictions, supported by adequate consideration. Requirements vary significantly by state—some require consideration beyond continued employment, and some states prohibit or severely limit non-competes.

Trade secrets are information deriving economic value from not being generally known, protected by reasonable secrecy measures under the Defend Trade Secrets Act and state laws. Confidential information is a broader category that may include information not meeting the trade secret threshold but still protected by agreement.

Conduct exit interviews reinforcing obligations, remind departing employees of their agreements, secure return of all company property and data, preserve relevant electronic records, and monitor for potential violations. Consider sending reminder letters to departing employees and their new employers.

Remedies include injunctive relief to prevent ongoing violations, monetary damages for lost business, disgorgement of profits, extension of the restricted period, and in some cases attorneys' fees. Temporary restraining orders and preliminary injunctions provide urgent relief.

Fair use is a defense that permits limited use of copyrighted material without permission. Courts consider four factors: the purpose and character of use (commercial vs. educational, transformative vs. copying), the nature of the copyrighted work, the amount used, and the effect on the market. Fair use is highly fact-specific.

For works created today by individual authors, copyright lasts for the life of the author plus 70 years. Works made for hire and anonymous/pseudonymous works are protected for 95 years from publication or 120 years from creation, whichever is shorter. Older works may have different terms.

Yes, software code is protected by copyright as a literary work. Both source code and object code can be registered. However, copyright protects the expression of ideas, not the underlying functionality—patent protection may be more appropriate for novel methods and processes implemented in software.

Our virtual legal services offer streamlined, cost-effective solutions for common copyright needs. Services like copyright registration, assignment agreements, and DMCA takedowns are available online with fixed, transparent pricing. You get the quality of a top IP firm with the convenience of digital delivery.

Related Matters

StreamCo v. ContentPirate Networks

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Venue: C.D. Cal.Result: Favorable Settlement
PhotoArt LLC v. Social Media Giant

Prosecuted copyright infringement claims on behalf of professional photographers whose work was used without authorization. Secured significant damages award and implementation of improved licensing procedures.

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GameDev Studios v. CopyCat Apps

Enforced copyright and trade dress rights in mobile game against clone applications. Obtained preliminary injunction and permanent removal of infringing apps from major app stores worldwide.

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MusicPublisher Inc. v. AI Training Corp

Cutting-edge case addressing use of copyrighted music in AI training datasets. Negotiated comprehensive licensing framework that allows continued AI development while protecting rightsholders' interests.

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SoftwareCo v. Former CTO

Prosecuted claims against former executive who copied proprietary source code to competitor. Established ownership under work-for-hire doctrine and obtained injunction plus damages for willful infringement.

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University Press v. Document Sharing Site

Represented academic publisher in enforcement action against site hosting pirated textbooks. Implemented systematic takedown program and pursued contributory infringement claims against operators.

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