Automated Trade Secret Asset Management: Five Elements

FEBRUARY 13, 2023

On Jan. 5, 2023, the U.S. Federal Trade Commission ("FTC") announced proposed rulemaking that would ban the use by employers of post-employment, non-compete agreements as a method of unfair competition calling it the "Non-Compete Clause Rule."

A non-compete clause is a contractual term between an employer and a "worker" that typically blocks the former employee or worker from seeking or accepting employment with a competitor, or starting a competing business.

For decades, non-compete clauses have been used to protect legitimate employer interests including near-permanent customer relationships and trade secrets. In many companies, using non-compete agreements is the primary way that the company protects its trade secrets.