As a corporate employer, in the past, you may have had your employees sign noncompete agreements. These agreements could be written in different ways, but they essentially limited where an employee could work if they chose to leave their current job. They may have been prevented from going to a direct competitor, and the agreement could have used geographic limitations or specific deadlines, such as saying that the employee could not work for the competition for five years after leaving their job.
One reason to use agreements like these was to protect intellectual property. An employee who cannot immediately run to the competition is not able to bring trade secrets and other important details.
However, this tactic can no longer be used. The Federal Trade Commission banned noncompete agreements last year. Most agreements that have already been signed will no longer stand in court, and new agreements cannot be used in the vast majority of cases, although there are limited exceptions. Does this mean that your intellectual property is now at risk?
Taking a proactive stance
Your IP does not have to be at risk; you just need to know how to protect it without the use of a noncompete. One example could be using a nondisclosure agreement instead. An employee who signs an NDA may have to keep certain trade secrets, even if they leave to work for the competition.
Another thing to remember is that you can often use patents, copyrights or trademarks to protect intellectual property at various levels. Once you have patented the design for a product that your business makes, other companies are legally barred from stealing that design and using it without your permission.
The key, then, is to understand all the legal tools at your disposal and the steps you need to take to protect your business. An experienced law firm can help.
