The Importance of Proper Document Execution
If you use noncompete or confidentiality agreements in your course of business, make sure the employees properly fill them out. A detail as minor as a signature in the wrong place may invalidate your ability to keep your trade secrets secret.
Earlier this year, IBM initiated a lawsuit with David L. Johnson, a former executive, who became employed with Dell, one of IBM’s competitors. IBM claimed that the ex-exec was in violation of a noncompetition agreement as well as an agreement to protect trade secrets. As the lawsuit was pending, IBM attempted to obtain a preliminary injunction to stop Johnson from “performing duties” at Dell. IBM suspected him of using valuable trade secrets in the course of his new employment, which would be a breach of duty to IBM. However, a U.S. District Judged denied the preliminary injunction. The denial came was due in part to the fact that the validity of the agreement was questionable because it was not properly signed. Although Johnson signed the document, he did not do so in the correct place.
For more information regarding noncompete and confidentiality agreements, get in touch with an attorney to discuss your options.
