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Non-Compete Blog

Posts from October 2014.

The expression “you cannot make a silk purse out of a sow’s ear,” apparently applies to restrictive covenants as well. The court’s decision in Genex Corp., v. Contreras, et al., 2014 BL 279888 (2:13-cv-3008, E.D.W, Oct. 3, 2014), although specific to Washington and Wisconsin, is of some note because of the court’s reluctance to enforce restrictive covenants applicable to line-level, at-will, employees both because at-will employment may lack sufficient consideration for enforcement of the promise and because they are inherently “unreasonable.”

What is the Inevitable Disclosure Doctrine?

Under the inevitable disclosure doctrine, courts may enjoin a former employee from working in a specific job if doing so would inevitably lead to the disclosure of his former employer’s trade secrets. Courts following the inevitable disclosure doctrine most often apply it where a former employee with knowledge of his former employer’s trade secrets moves to a competitor and takes a job with duties so similar to his former position that the court finds that he cannot perform his new duties without using his former employer’s trade secrets.  Because such disclosure is “inevitable,” the former employer need not sit and wait until there is actual or threatened use of the trade secrets before the former employer takes legal action.

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