Tag Archive | "non compete clause"

Will I Be Sued If I Start A Similar Corporation Shortly After Exiting Another?


I exited a business around four months ago due to partner problems and would like to now start my own operation in a similar field. We just finalized a buyout agreement and signed papers releasing me as a Director from the corp. The previous company was in a field that involved a software database be created to analyze corporate billing for their telecom accounts – both wire line and mobile (can’t be too specific).
The corp I’m looking to start would offer a similar service, however would be different in a variety of ways and would also be built without directly copying anything that I have intellectually from my previous role. The new corp would have some similarities as far as the solution, however would be built from the ground up.
We have a unanimous shareholder agreement in place for the corp I had been previously part of (I was an equal shareholder – all minority shares @ 25%). My concern is that the USA has a clause in relation to confidentiality and states that no officer shall divulge any information regarding the business, or its finances, affairs, dealing and any trade secrets of the company including trade secrets, designs, methods, etc. I had them remove the non compete clause, as it would ban me from the industry for 10 years. The only non compete currently in place is in regards to going after existing clients of the corporation for a period of 3 years, which I wouldn’t do.
If I start his new corp, what is the likely hood I’ll be sued once they find out? If I were to be sued, they would obviously sue for damages, but would it be an amount that could potentially shut be down? If I want to be sneaky, could I find a partner and register everything in their name and act as employee for the time being?
Seeing as several big corps sue each other all of the time over IP, patents, etc I don’t see this being any different. I would however go in to the new corp without the intention of directly copying their solution. They also don’t have any patents or really proprietary technology, as several other companies offer a similar product/service and ours was created based on a couple of them in market ironically enough, so I don’t see them being able to prove that their solution was that unique and not based off others in market.
Advice from savvy biz professionals, or lawyers would be ideal. I want some advice before investing personal capital. I will likely sit down with a lawyer here, but want to know whether or not this is a waste of my time. I was bullied out of the other co and know that’s its a profitable market that I want to be a part of, just without idiots.

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Before Joining the Affiliate Program


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Many people today have heard of affiliate programs. These programs may also called Re-seller Programs, Associate Programs, Commission or Pay-Per-Sale or Pay-Per-Click programs.

If you’re considering joining an affiliate program there are a few things you should know before signing up. One of the first things you should know is what type of affiliate program it is that you’re considering signing up for.

There are several different types of associate program, some of which are named above. And while they all have something in common, there are important differences you should be aware of.

You’ll want to do your research, read the affiliate information and ask questions first before signing up and investing any amount of time or money into the endeavor.

One of the major differences you’ll find amongst associate programs is how much they pay and when they pay. How much a program pays can range from pennies per click if it’s a pay-per-click program to as much as a 50% commission if it’s a pay-per-sale program.

All of this should be clearly stated in the affiliate agreement. As for when they pay, that varies from program to program, too. Some programs pay daily, others weekly, and still others can take up to 90 days to pay.

Again, this should all be clearly stated in the affiliate agreement.

Another topic that needs to be addressed is non-compete agreements. You need to know whether or not the affiliate program you’re considering signing up for has a non-compete clause in its agreement or if they’ll have you sign a non-compete agreement.

If either of these are the case you need to clearly understand the agreement before signing it. This type of clause or agreement generally prevents you from taking part in any activity that can be seen as competition for the party who’s requesting the agreement.

This means that if you sign up with “Affiliate Program X” and sign a non-compete agreement with them then you’re not allowed to also sign up for “Affiliate Program Y’s” affiliate program, too.

Most of what you need to know about an affiliate program is clearly stated in their agreement.

Just be sure to take your time and read it carefully and ask any questions you may have before signing up.

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