${site.data.firmName}${SEMFirmNameAlt} Menu
916.749.1431

Can a noncompete protect your business from trade secret theft?

The leaking or misuse of vital company secrets has the potential to harm your Sacramento business. If a former employee uses what he or she learned while in your employ to start a competing company, you might end up losing customers. This could also happen if he or she distributes protected company knowledge to others. For this reason, you might find it beneficial to have employees sign a noncompete clause.

Entrepreneur points out that noncompete agreements are, in part, used to prevent employees from creating unfair competition after they leave employment. In this way, they might entice away your established clients or compete in a geographical area that is too close to your business. How might a former employee hurt your operations with the theft of trade secrets? If, for example, you are the owner of a popular bakery, an employee who knows your secret recipe might use the recipe to start his or her own bake shop. An engineer who worked for your game development firm might use your company’s programming code or client information to develop a competing business. Either of those scenarios would take advantage of information that you would not want to be used outside the scope of your business.

A noncompete agreement could specify that employees are prohibited from using their knowledge of your company’s operations, clients, financial information or other data for their own gain after leaving your employment. Violating the terms of the agreement may give you legal recourse. This information, however, should not replace the advice of a lawyer.

No Comments

Leave a comment
Comment Information

Contact Our Law Firm - Request An Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get In Touch With Us

Millstone, Peterson & Watts, LLP
2267 Lava Ridge Court Suite 210
Roseville, CA 95661

Phone: 916-749-1431
Fax: 916-780-8775
Roseville Law Office Map