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.


Asked on 6/03/09, 6:47 pm

4 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

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.

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Answered on 6/03/09, 6:49 pm
Terry A. Nelson Nelson & Lawless

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.

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Answered on 6/03/09, 7:03 pm
Glenn Truitt Truitt Law Group

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!

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Answered on 6/03/09, 7:09 pm
Daniel Bakondi The Law Office of Daniel Bakondi

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.

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Answered on 6/03/09, 7:20 pm


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