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Non-Compete Blog

Posts from October 2013.

After a financial services salesperson resigned and took a chunk of his employer’s database with him, HNRK successfully argued to an arbitrator acting under the American Arbitration Association’s Optional Rules for Emergency Measures of Protection, that he should award injunctive relief against the use and disclosure of our client’s trade secrets even though the underlying employment agreement only provided for monetary relief.

In a recent non-compete case filed in the New York Supreme Court in Suffolk County, Long Island, the court was none too protective of two employees accused of violating their employment agreements, denying their motion to dismiss their former employer’s complaint.

A recent New Jersey Appellate Court, considered this question and the issue of when is a confidentiality agreement so broad as to be, in effect, a non-compete provision that precludes an ex-employee from working in their chosen profession. In UCB Manfacturing, Inc. v. Tris Pharma, Inc. and Yu Hsing Tu 2013 WL 4516012 (Sup. Ct N.J., App Div. Aug. 27, 2013, Defendant Tu, an industrial pharmacologist, worked for plaintiff UCB as the lead “formulator” for the cough syrup Tussionex. Tu signed a detailed and lengthy, but boiler-plate, confidentiality agreement pledging not to disclose secret information regarding product design, formulas, processes, techniques, know-how etc. His agreement did not contain a non-compete.

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