1 the former and new employer are competitors 2 the employee possesses trade

1 the former and new employer are competitors 2 the

  • University of Texas
  • LEB 323
  • Test Prep
  • kellmargs2
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1) the former and new employer are competitors, 2) the employee possesses trade secret information belonging to A 3) the trade secrets would inevitably be used in new job EMPLOYMENT CONTRACTS WITH A NON-COMPETE Term begins on commencement date and ends on first anniversary of the commencement date (initial term) Timeframe- 5 years and under is reasonable Geographical context- If competing company is closer, the non-compete will last longer, be more strict Exceptions If confidential info is available to public Disclosures required by acceptable law Exec shall return any confidential documents within 5 days of termination Exec shall not Invest in other companies unless less than 5% ownership Own, manage, finance, operate any competitor “Company”- company A “business”- company B Sell any product or service belonging to company A Cause anyone that has a business relationship with Company A to terminate or interfere with anything Employ anyone that worked at company A Make any statement which damages company A “Directly or indirectly”- any action that has effect on company A “Confidential information”- all trade secrets or information “Affiliated companies”- anything under common control with company A Exec is protected from communicating trade secrets with gov agents
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Remedies - if exec violates, company A is entitled to restraints or injunctions PATENTS Patent- government grants 20 year exclusive right to make use or sell invention Nonrenewable- After patent period, item is public domain Pharmaceutical patents usually less than 20 years Applying for a patent Application filled out with US Patent and Trademark Office (PTO) “Assignee-at-issue” is corporation that employed investors Must contain detailed descriptions of invention Must disclose “ contemplated ”- best mode for putting invention into practice Requirements of patents 1. Patentable subject matter 1) machines, 2) manufactures, 3) compositions of matter, 4) processes, and 5) any improvement on the first four categories that itself meets all of those requirements Tangible and created by person themselves- specific “Utility patents” - regular patents “Design patents” non-functional ornamental design elements in a functioning product Cannot patent or make trade secret- naturally occurring substances or abstract ideas (formulas, scientific principles) 2. Useful 3. Novel New and unique (not already out there) Source of a lot of patent controversy 4. Patent application was filed within one year of the invention creation 5 . ”Nonobvious” Something that is not obvious to someone in same industry Does not apply to secondary use of an already existing product (broom as spider killing machine) Remedies- if P successfully demonstrates patent infringement Can include lost profits on sales- huge amounts of $
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