Legal Question in Business Law in California

Re: Conflict of Interest

Once you leave your job they cannot stop you from doing anything you want for a living.

Re: Conflict of Interest

This is a very complicated question, and the answer mostly depends on nuances and facts not stated in your question. In general, you are not supposed to compete with your employer for the same business you solicit or service for him as an employee; and it sounds like you are doing just that. But if the employer is fully aware of what you are doing, and does nothing to stop you doing this while you are employed, then in California he cannot interfere with your occupational activities after you terminate.

Re: Conflict of Interest

Keep two important concepts separate. First, you have a right to pursue any occupation after quitting, and that includes the occupation of manufacturing a competing product. HOWEVER, you cannot use any property, including so-called intellectual property, belonging to the former employer.

Intellectual property includes trademarks, patents, copyrights, trade secrets, customer lists, concepts that you were working on while being paid to work on them, and on and on. It's a pretty inclusive list.

The chances are quite high that you will be sued if your new business (1) diverts business or looks like it does or may divert business, and (2) appears to be using any information obtained from or developed while on the employer's payroll.

The idea could be the old company's property even if you thought of it all by yourself and never discussed it with them while you were there.

Even if the lawsuit is unsuccessful, it may cost you a lot to defend yourself, and in the meantime your fledglng business will suffer.

Especially if you will be capitalizing your proposed business with other people's money through borrowing or selling stock, you need to have a business attorney go over your entire business plan with you, concept by concept. Among the areas where you'll need advice are what ideas and technology you can freely use, and what belongs to the other outfit.