Legal Question in Business Law in California
Non Compete / intellectual property
I sold my business 3.5 years ago. I
signed a non compete. An old
customer who doesn't like doing
business with the new buyer wants
me to start making him the product
again. The buyer is out of state (I am
in California). I know that the non
compete is probably not valid,
however I sold the processes and
technology (which I developed
myself) as well. Do I need to develop
new processes, or can I use the
processes I developed. I am in
California.
4 Answers from Attorneys
Re: Non Compete / intellectual property
There is no way to answer your question without knowing what the sales agreement says. Merely telling us that it included a non-compete clause is not enough. Whether that clause is enforceable depends upon what it says (among other things), not how you label it.
Re: Non Compete / intellectual property
If you don't own the rights to protected technology because you sold them in an enforceable contract, then you have nothing to sell. Develop something new and different, and sell that. Feel free to contact me if serious about getting legal help with the new technology contracts.
Re: Non Compete / intellectual property
Although non-compete agreements are automatically void, as a matter of law under the Business and Professions Code Section 16600 - there are two well-founded exceptions, one of which is the sale of goodwill in a business.
It sounds as though your non-compete IS valid, but you should have it reviewed to be sure.
If valid, the scope may actually proscribe you from participating in a similar venture regardless of the process you use.
Please contact me if you need additional help!
Re: Non Compete / intellectual property
The question is one probably of contract interpretation and I may be happy to take a look at your documents if you want an attorney. You may or may not send him a letter telling him what you are doing, depending on the facts - I do not know at this point.
Best,
Daniel Bakondi, Esq.
IMPORTANT:
No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.
Related Questions & Answers
-
Phone book AT&T left my business listing out of the white pages and yellow... Asked 6/03/09, 3:18 pm in United States California Business Law
-
Pay Cuts Legal? My employer advised us today, that effective immediately, all... Asked 6/02/09, 3:09 pm in United States California Business Law