Legal Question in Intellectual Property in Oklahoma

Proprietary info and trade secerts no compete clause

I work for a company who bought out the old company I worked for. We change oil and perform PMI on large trucks. I was handed a emp. agreement that IF I signe it states I will not work in this field for 3 years. It also states I will not reveal any info about the company. I do not know what they charge customers because I never get to price tickets nor do I know about their contracts in any way.I would like to start my own buisness very soon and do not feel I should signe this contract. It dose not state that I could be fired for not signing this form. I need all the help I can get on this. Also every thing I do for this company is comon knowledge. Thank you


Asked on 2/08/03, 11:45 pm

3 Answers from Attorneys

Amy Ghosh Law Offices of Amy Ghosh

Re: Proprietary info and trade secerts no compete clause

Then..decline to sign the contract. In Ca this type of covenant not to compete is never enforced

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Answered on 2/09/03, 2:33 pm
Bruce Burdick Burdick Law Firm

Re: Proprietary info and trade secerts no compete clause

The prior attorney advised you that these clauses are not enforced in California. However, they probably ARE enforceable in Oklahoma or Arkansas, provided they are for short periods such as 3 years and provided there is a legitimate reason for them, and I think there is. The agreement must also be limited in geographical area to the marketing area of the company, and you have not mentioned whether that was part of the clause.

I would stall on signing that non-compete as long as I could if I were you. If you want to open your own business, then absolutely do NOT sign a non-competition agreement that would, if enforced, prevent you from opening your business.

This is common sense. It would be foolish to sign something that would, if enforced, prevent you from doing something you intend to do, unless you are somehow compensated fairly for signing. If they are making it a condition of working for them, then you have a decision whether to risk losing your future opportunity or risk losing your current job. Only you know the how bad you need your current job.

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Answered on 2/09/03, 5:03 pm
Jeffrey Look Look Law Firm

Re: Proprietary info and trade secerts no compete clause

Since you haven't gotten a response from an attorney licensed in Arkansas, I will give you a general rule. If you have access to company secrets, particularly clients/customer names and company pricing info, such as a manager or corporate or fleet sales type of person, or if there is something special or unique about the way they change oil or fix trucks then 3 years (if reasonable in terms of geographic limits) may be enforceable in Arkansas. You didn't mention geographic restrictions and you indicate that you probably do not have the kind of access to client info or pricing info that would be protectable info. If you are simply working as a mechanic, and they want 3 years and a nationwide or worldwide or geographically unrestricted area, I think it is overly draconian and probably would not be enforceable. Still, if you are entertaining thoughts of opening your own shop, then I would not recommned signing the covenant not to compete unless they are willing to pay you to sit around doing nothing for 3 years but still pay you your full wages (Kind of like with Nolan Richardson) but I seriously doubt they will do that.

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Answered on 2/09/03, 6:21 pm


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