Legal Question in Intellectual Property in Maryland

Accept job offer from a competitor

I have worked for a private plastics manufacturing company for the last 12 years. I am a manager. My aquired expertise limits job transfer diversity. I am interested in working for a direct competitor. I fear that my employer would seek damages, claiming that I cannot work within my industry for a period of one year. Presumably, their concern would be the intellectual information that I have acquired over the last 12 years. To my knowledge, I have never signed a contract agreeing to this, although, for the last several years such an agreement has been a prerequisite for new employment. Being that my expertise is in a field that limits my future job opportunities to that of competitors, would such a contract be valid and would it hold up in court?


Asked on 8/21/01, 9:36 pm

2 Answers from Attorneys

Lawrence Holzman Holzman Law Firm, LLC

Re: Accept job offer from a competitor

Agreements not to compete are regularly enforced by courts in Maryland and other jurisdictions. The test if whether the scope of the agreement, both in time and geography is "reasonable" under the circumstances. Unfortunately, this can mean that some people literally have to relocate to other parts of a region or the country in order to become employed without breaching such contracts. On the other hand, if you didn't sign such a contract then that's a different story. You generally can't be held to terms if you didn't agree to them.

However, you should be careful because even if you are able to get around no-compete agreements, there is still the potential that you would be using trade secrets or proprietary information if you went to a competitor.

Unfortunately, the only way to get a good idea as to your situation would be to have a detailed interview into the facts of your circumstances. You should contact an experienced employment attorney before making the move you are contemplating.

If you would like to chat briefly to see if I or my firm may be of assistance, please feel free to contact me at my address and telephone listed below.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 8/22/01, 2:35 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Accept job offer from a competitor

The one year limitation does not, of itself, eliminate

any potential liability that you could face. There may be

trade secrets, patented processes, and other intellectual property

rights which may provide your company with redress beyond the one year

cooling down period.

Time and distance are the analytical underpinnings to discern whether

any agreement is fair. However, where you never agreed, there is no agreement.

You may want to contact your employer and inquire about their position on the matter.

This is a particularly sensitive issue which requires the assistance of an attorney.

DISCLAIMER: No legal advice is being provided herein and no aspect of this communication

so be construed as such. When confronted with a legal issue, the best advice is to obtain an

attorney.

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Answered on 8/30/01, 2:41 pm


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