Smooth Transitions

Smooth Transitions

addressing the Legal issues arising from the departure of employees & Business breakups

Monthly Archives: August 2009

Are customer lists trade secrets? Sometimes.

Posted in Trade Secrets
                                                 In a breach of non-compete or non-solicit lawsuit, the former employer will almost always claim their customer lists are trade secrets.  Texas Courts consider the following factors when determining if something is a  trade secret: (1) the extent to which the information is known outside of his business; (2) the extent to which it is… Continue Reading

Arbitration – BofA SEC Settlement – NY AG Lawsuit

Posted in Arbitration, Executive Compensation
A couple of quick hits on issues previously addressed: Arbitration BofA is one of a number of banks to drop mandatory arbitration provisions in their agreements with credit card holders. It follows JP Morgan Chase which stopped referring credit card disputes to arbitration last month.  The tide seems to be turning against arbitration in the consumer… Continue Reading

Did Google/Microsoft agree not to poach employees?

Posted in Hiring and Firing
  High-tech companies have been vigorous in their attempts to keep employees from departing to competitors as evidenced by the Mark Papermaster lawsuit filed by IBM and Steven Johnson case.  According to some reports, Google and Microsoft entered into an unofficial agreement not to poach each others’ employees.  Essentially, neither company would actively pursue or recruit… Continue Reading

An Empirical Analysis of Non-Competes

Posted in Executive Compensation, Non-Compete Agreements
                                        Mark Garmaise, an Associate Professor at UCLA’s Anderson School of Management, recently published "Ties that Truly Bind: Non-Competition Agreements, Executive Compensation and Firm Investment."  Garmaise concludes that enforcement of non-competes promotes executive stability, results in reduced executive compensation, shifts compensation towards a greater use of salary, and reduces research and development spending.  The paper also… Continue Reading