Legal Question in Business Law in Texas

Labor law - Intelectual property

Under my current employment contract I am restricted to go and work for competitors or start my own business that could compete with my current employer. I had and idea for a related business that I presented to the owners of the company as an opportunity to create a new partnership with them. They declined the idea at the moment because of lack of funds to invest in it. I want to start the business without them. Do I need to get their permission? Since I offer the idea to them while being an employee, do they own the rights of the idea? It is a competing business (not directly but close).


Asked on 6/15/09, 11:57 pm

3 Answers from Attorneys

Re: Labor law - Intelectual property

Whether or not they could enforce the noncompete is going to be fact specific, and will depend on what's in the contract that you signed. You should hire counsel to review the agreement and your proposal.

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Answered on 6/16/09, 12:07 am
Charles Williamson Charles J. Williamson, Attorney At Law

Re: Labor law - Intelectual property

Might be too late now to have them sign a non-disclosure agreement, since you have already divulged the idea to them, but that's what you should have done BEFORE sharing it with them. Now, unfortunately, its pretty much going to be a case of their word or yours - unless you have some witnesses that will sign sworn statements to the effect that the idea is yours. And, you're not likely to find such witnesses because they will all likely be employed by the company and not want to risk losing their jobs. There are some other things you might try, but this would be beyond the scope of the simple and free advice we can give here. Hope this helps a little.

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Answered on 6/16/09, 9:51 am
Charles Williamson Charles J. Williamson, Attorney At Law

Re: Labor law - Intelectual property

I would have to see the non-compete agreement you signed before being able to give you any reliable advice.

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Answered on 6/16/09, 10:03 am


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