Tag Archives: unfair competition

Over 50 percent of employees admit stealing company information when they leave for a new job. It’s this “insider threat” that keeps us up at night. To help combat it, we have updated and reissued our training, Protecting Trade Secrets While Working From Home, with improved audio and additional substance.
Once again, we have resounding unanimity on the issues and recommendations to the FTC and DOJ, as they consider whether to regulate (and if so, how) noncompetes, nondisclosure agreements, and other restrictive covenants. 70 lawyers who practice extensively in the area of trade secret and restrictive covenant law agree: federal regulation is likely inappropriate, definitely premature, and, in any event, should be limited.
This afternoon, President Biden signed an “Executive Order on Promoting Competition in the American Economy,” which included pushing for the regulation of noncompetes by the FTC. Based on his comments during today’s press conference (discussed in the post), we expect that any regulation will be balanced, focusing on regulating the abuses, rather than a throw-the-baby-out-with-the-bathwater wholesale ban.
The Supreme Court’s decision in Van Buren is out. The Court took a narrow view on the scope of the CFAA, resolving key aspects of the circuit split, and eliminating the concern that every breach of fiduciary duties by an employee or violation by an employee of the terms of their employer’s computer use policy can be a criminal act.
Protecting trade secrets, confidential business information, goodwill, and any other recognized legitimate business interests does not happen by accident. Companies need to plan. And, when one of the key tools is taken away (i.e., noncompetes), they need to look more closely at the remaining options to ensure they have the protections they need and that fit their circumstances. We discuss them in this post.