Confidentiality Agreements in View of Federal and State Initiatives on Competition [CC]

Confidentiality Agreements in View of Federal and State Initiatives on Competition [CC] — CLE 90 min

Implementing the White House's efforts to open labor markets and address abuse of market dominance, the Federal Trade Commission negotiated consent orders against several companies' use of non-compete agreements and has proposed to promulgate a nationwide prohibition of employee non-competition agreements. The panel will examine the bases for enforceability of "confidentiality agreements", both express and implied, both in the employment context and business contexts including joint development agreements

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Implementing the White House's efforts to open labor markets and address abuse of market dominance, the Federal Trade Commission negotiated consent orders against several companies' use of non-compete agreements with their entire employee ranks, including engineering employees who may possess protectable confidential information, and has proposed to promulgate in April 2024 a nation-wide prohibition of employee non-competition agreements (including non-disclosure agreements that may have the effect of limiting subsequent employment).

The National Labor Relations Board has found violative of the National Labor Relations Act certain non-disclosure agreements that limit employee discussion. Minnesota and New York (before the Governor) have joined California, North Dakota, and Oklahoma in banning employee non-compete agreements. Although the jurisdiction of the FTC is expected to be challenged, it is timely to review best practices in contractually protecting non-public information that may or may not meet the definition of 'trade secrets", particularly in view of a trend of closer scrutiny (even by the Delaware courts in business-to-business agreements).

The panel will examine the bases for enforceability of "confidentiality agreements", both express and implied, both in the employment context and business contexts including joint development agreements.

Moderators

Panelists

Bridget Smith, Kim R Jessum, Sharon K Sandeen

Sponsors

Antitrust Law Section, Section of Intellectual Property Law

Product Code

PT2401CAFOLC

Duration

90

Publication Date

1/9/2024 12:00:00 AM

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