Pros & Cons Of Non-Compete Agreements

YoungUpstarts

Non-compete agreements can be an effective tool to protect these assets. Under the right circumstances and when properly drafted and implemented, non-compete agreements are enforceable in Florida. Non-compete agreements must be limited in time and geographic scope.

Primary Problems with Enforcing Non-Compete Agreements

YoungUpstarts

Businesses often require employees to sign non-compete agreements to protect their business interests. However, just because an employee has signed a non-compete agreement does not make the agreement valid under the law. Non-Compete Time Period.

Schrödinger’s Start-Up — Why VCs Don’t Sign NDAs or Non-Compete Agreements

Austin Startup

Every so often, I get an email from an entrepreneur that starts something like this: “By reading further, you agree to the terms of our non-disclosure and non-compete agreement” My immediate reaction is to delete these emails with prejudice.

It's All About Talent (part 2) - Eliminating Non-Competes

Seeing Both Sides

For the last few years, many leaders in the Massachusetts innovation community have been arguing that non-compete agreements should be eliminated. Many studies have shown that non-compete agreements reduce R&D investment and stifle innovation.

What about previous company non-competes?

Berkonomics

What is the rule about those pesky non-compete agreements signed upon discharge or sale of the previous company? The good news is that if you were not a significant (usually 5% or more) selling shareholder of a previous company, many states specifically exempt non-compete agreements signed between companies and their employees or minority shareholders. Entrepreneurs tend to remain in the business arena they came from.

Watch out for the gray areas in non-competes.

Berkonomics

Certainly the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. Separate confidentiality from non-compete, and obey the confidentiality clauses. The non-compete agreement does expire when stated. Some clever buyers try to slip in an unlimited non-compete, and some courts have upheld this. Does the non-compete start anew upon the employee’s departure?

Massachusetts Has An Innovative Approach To Immigration Reform

Feld Thoughts

First, he’s proposing to ban non-competition agreements. Even though I often say that was 11 years and 364 days too many for my “non-big city, non-east coast” personality, Boston still has a sweet spot in my heart. The Massachusetts non-competition situation has always been stupid. In 2009, my partners and I at Foundry Group joined a coalition of VCs to try to eliminate non-competition agreements in MA.

Key Contracts Every Business Must Use

YoungUpstarts

Whether a business is contemplating entering into a partnership, hiring a service provider or in the process of selling itself, a non-disclosure agreement should be utilized when information is shared with third parties. by Tej Prakash, co-founder of ShouldiSign.com.

Protecting Your Business Idea

YoungUpstarts

Anytime you decide to bring in someone who does not have a stake in your business idea you should have them sign a binding Non Disclosure Agreement or NDA before you tell them or show them a thing. Non-compete Agreements Before and After Hiring.

7 Reasons To Turn The Enemy Into A Strategic Partner

Startup Professionals Musings

Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths.

Protect Your Startup From The 5 Most Common Employment Law Risks

Early Growth Financial Services

Restrictive covenants — Employers often use non compete and non solicitation clauses to retain employees. While non competes are not … Continue reading → Legal Why worry about employment law risks when you have enough things to focus on: building your team, getting traction, and lining up funding? Well, as the adage goes, “an ounce of prevention is worth a pound of cure.”

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

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5 Ways To Protect Your Idea From Theft

YoungUpstarts

Non-Disclosure Agreements – A non-disclosure agreement helps to protect your idea by committing all the parties you are working with to confidentiality. Have they supported any competing businesses in the past? by Lewis Robinson.

Sharks In The Water: How You Deal With Competition In Business

YoungUpstarts

Learn the difference between non-compete, nondisclosure and confidentiality agreements. Even if you don’t have the budget of your competitors, you can still definitely compete in the marketing arena. When it comes to business, you better believe that monsters are real.

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

10 Steps To Finding The Right Startup Co-Founder

Startup Professionals Musings

Use caution to avoid employer conflicts of interest and non-compete clauses. A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup.

When is a Startup Non-Disclosure Really Required?

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.

Startups Need Mergers And Acquisitions For Growth

Startup Professionals Musings

Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.

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What Start-Ups Need To Know About Employment Law

YoungUpstarts

It covers all employers, whether unionized or not, that meet a certain threshold of interstate commerce activity, and provides even non-union employees rights to certain “concerted, protected activities.” Image credit: Contract from Shutterstock.

10 Keys To Finding That Perfect-Fit Business Partner

Startup Professionals Musings

Use caution to avoid employer conflicts of interest and non-compete clauses. In my experience, the initial idea for a new product usually comes from a single entrepreneur, but the implementation plan for a new business requires a team, or at least a co-founder. The reason is that any one person rarely has the bandwidth, interest, or skills to manage all the tasks required to build a business. Thus I find that two heads are usually better than one in a startup.

7 Shortcuts That Can Kill A Startup Business

Startup Professionals Musings

Clarify up front the potential for a conflict of interest or violation of a non-compete clause, and confirm the answer in writing. Remember that all businesses, even non-profits, require revenue to survive and prosper.

How Important Is The Legal Department For A Startup Company?

YoungUpstarts

You have to align your business model to the needs of the market, find competent staff to execute your plans, develop a high-quality product, invest in marketing and set up a corporate network that can boost growth and revenue.

Accelerate Startup Growth by Looking Outside the Box

Startup Professionals Musings

Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.

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7 Ways That Startup Competitors Can Win By Partnering

Startup Professionals Musings

Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths.

Tough Competitors Are Your Best Strategic Partners

Startup Professionals Musings

Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths.

Entrepreneur Helps Businesses Focus on Passion Points Instead of Pain Points to Get Results

Hearpreneur

Thankfully non-competes are illegal in most states now, and even then, I didn’t let that stop me from following my dreams). Share. “Content is King.” ” It’s a popular phrase that has been used over and over again.

6 Costly Employment Contract Mistakes To Avoid

YoungUpstarts

Non-Disclosure and Non-Compete Clauses That Are Too Broad. Many startups make the mistake of not establishing a proper legal structure right off the bat.

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Don’t Ask Known Investors to Sign Non-Disclosures

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.

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Idea Non-Disclosure Demands Kill Investor Interest

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.

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For a Startup, Two Heads are Always Better Than One

Startup Professionals Musings

Watch out for non-compete clauses, and conflicts of interest with the current employer. If you are a first-time entrepreneur, I recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours.

For a Startup, Two Heads are Always Better Than One

Gust

Watch out for non-compete clauses, and conflicts of interest with the current employer. Sergey Bin and Larry Page image via Wikipedia for Google.

Please Vote

Startup Lessons Learned

These policies are not easily categorized as "right" or "left" so they get lost in the din of campaign coverage: abolishing non-compete agreements, portable health insurance, open regulations that allow new business models, open data and government APIs, appropriate bankrupcy laws, patent reform.

Legal Mistakes Every Startup Can Avoid

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

Ten Steps in Choosing the Right Startup Partner

Startup Professionals Musings

Watch out for non-compete clauses, and conflicts of interest with the current employer. If you are a first-time entrepreneur, I often recommend that you team with a co-founder with experiences, connections, and a skill set that complements, but doesn’t duplicate yours.

Paranoid Companies Miss the Best New Opportunities

Startup Professionals Musings

Others will now buy your travel magazine over a travel book, for example, which competes with both your magazine and the video individually. If your "competitor" isn't really competing with your direct market, you can refer business to each other without anyone losing customers. Companies need to very clearly define where they are working together and where they are competing. The right place to start with a good joint non-disclosure and non-compete agreement.

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10 Effective Offline Marketing Ideas for Startups in 2015

Up and Running

Create strategic partnerships with non-competing businesses in your area. Billboards: definitely offline. Most of us believe that these days, digital marketing is the only way to get results.

Your Toughest Competitor May be Your Best Partner

Startup Professionals Musings

Others will now buy your travel magazine over a travel book, for example, which competes with both your magazine and the video individually. If your "competitor" isn't really competing with your direct market, you can refer business to each other without anyone losing customers.

Find an outside confidant, a CEO coach.

Berkonomics

Develop relationships with fellow CEO’s in non-competing businesses for a start. The CEO position can be a lonely place, especially when the CEO finds himself in a position of not being able to bring an issue directly to the board and not wanting to explore solutions with associates within the company.

Startup Non-Disclosure Agreements are Overrated

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.

Six Good Reasons to Partner with a Competitor

Startup Professionals Musings

For “coopetition” (also called a strategic alliance) to work, companies need to very clearly define where they are working together, and where they are competing. Here is the right place to start with a good joint non-disclosure and non-compete agreement.

Why Lawyers Don’t Run Startups

Steve Blank

We could easily agree to a 90-day non-compete as a sign of good faith (what Visio didn’t know is that we had no bandwidth to take on another customer while we were getting their software installed.). Startups need to have a great lawyer, accountant, patent attorney, etc. But founders need to know how to ask for their advice and when to ignore it. Why Entrepreneurs Hate Lawyers. I was having coffee with a friend who teaches at the U.C.

So Bad It's Good

Altgate

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