Tag: Non-Compete Agreement

Black Hats and White Hats: Establish Expectations Early, Enforce Consistently

(Part Ten in a Series) A key employee has just left your company, joined your fiercest competitor, and begun a brain dump of your most critical intangible assets.  What can you do? If this is the first time you have thought about protecting your intangible assets, the unfortunate answer is, “Not much.”  That ship has …

Black Hats and White Hats: Create a Culture of Confidentiality

(Part Nine in a Series) Do you expect others to secure your secrets, protect your patents, and guard your goodwill?  Then respect the intangible assets of others. Even if you have implemented sound policies and procedures to protect your intangible assets, your policies will fail if you do not have buy-in from your employees.  You can …

Black Hats and White Hats: Give Adequate Time to Consider Restrictive Covenants

(Part Eight in a Series) Imagine that you have just started a new job with a great company. You’ve quit your job, sold your home, and moved hundreds of miles away from your family and friends to accept this fabulous opportunity. Now imagine that on your first day at work the Director of HR plops …

Black Hats and White Hats: Tell Prospective Employees About Restrictive Covenants

(Part Seven in a Series) You have an urgent need to protect the intangible assets of your business. Your intangible assets make up 75 percent or more of the value of your business. Moreover, your employees take your intangible assets home at the end of each day, and you are left hoping that they bring them back the next morning.  …

Black Hats and White Hats: Tailor Restrictions Specifically for Your Business

(Part Six in a Series) Your business is unique. No one does what you do the way you do it. You have developed a specialized niche for your services, and you serve your clients in your unique, individualized way. Why, then, would you download a form agreement off the internet to try to protect your …

Black Hats and White Hats: One Size Does Not Fit All

(Part Four is a Series) Clothing stores have for years perpetrated the lie that, for at least some types of garments, one size fits all.  Look around at the people you know, and you will agree the “one-size-fits-all” proposition is laughable. People come in many different sizes and proportions:  tall and short, lean and plump, …

Black Hats and White Hats: Not Everything Is Confidential

(Part Five in a Series) Remember the story about the boy who cried wolf? He tried to manipulate others by falsely claiming that a wolf threatened the town. Though the townspeople were fooled the first few times he raised the fraudulent alarm, they quickly became weary of his charade and began ignoring him. When he …

Black Hats and White Hats: Narrow Restrictions

(Part Three in a Series) Although the color of your hat depends on the cumulative effect of your actions, one of the surest indicators of its color is the scope of any restrictive covenants you have with your employees. White Hats have narrowly drafted restrictions, closely tailored to their legitimate business interests; Black Hats seek expansive restrictions.  White Hats …

Black Hats and White Hats: Cumulative Effect

(Part Two in a Series) If push comes to shove and you are forced to file suit to protect your intangible assets, be sure that you are Wearing a White Hat.* No one thing determines whether you are wearing a black hat or a white hat.  The color of your hat depends on the cumulative effect of …

Black Hats and White Hats: Wear a White Hat

(Part One in a Series) Watch an old time black and white Western, and you’ll quickly discern the “good guys” from the “bad guys.” The “good guys” invariably wear white hats while, for some unexplained reason, the “bad guys” feel compelled to wear black hats.  When a new character comes on the screen, the color of his hat …

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