Non-competition agreements are becoming more common in the employment realm. The agreement requires certain employees or the sellers of a business to not compete with the business for a period of time after they leave. (Non-competition agreements may also include non-solicitation of co-employees clauses and non-disclosure agreements regarding proprietary information which will be addressed in future blogs.) If the former executives are allowed to compete without restriction, the business could easily lose key customers, depriving the business of profits. On the other hand, individuals who are restricted by a non-compete may be deprived of their ability to earn a living.
Signpost is a company that produces marketing automation software used by small and medium-sized businesses. It now would like to expand by relocating its Denver office to an 8,500-square-foot location near the downtown area.
GE Lighting has opened a new manufacturing operation in Longmont, Colorado. GE Lighting had earlier acquired Albeo Technologies which was based in Boulder. However, as the company has since outgrown its operations in Boulder it has now moved to Longmont.
Entrepreneurs may not believe that they have anything worth protecting when they start a new business venture. However, even items such as the name of the company or the name of its product might need protection. This is because the name of the company and its products are often used as the cornerstone of its brand.
I was recently volunteering at an employment law legal clinic and a prospective client called in with a question about a job offer. The gentleman was provided with an oral job offer for a new position and was assured by the new company's Human Resources Representative that he had the job. However, about a week later, right as he was about to start the new position, he was informed that he did not meet the educational requirements for the job and the company was rescinding the offer. He was understandably upset and wanted to know if he had any legal recourse.
Denver Broncos fans may have heard of a recent dispute regarding the venue for final game of the NFL post season. During the week of Super Bowl XLVIII, the company that handled the installation of turf for the big game's 2014 stadium has sued UBU Sports, an entity that includes New Meadowlands Stadium Co. LLC and Dalton, Georgia-based Turf Industry Inc., for allegedly not paying the full amount due in the contract. UBU Sports is now face an impending lawsuit regarding the contract disputes.