Litigation

Non-Compete Covenant & Trade Secret

Cohen & Grigsby’s Non-Compete Covenant and Trade Secret attorneys provide representation to companies and individuals involved in disputes concerning the hiring of competitor’s employees and the protection, use and ownership of competitive intelligence.

Our litigators have experience in both the prosecution and defense of litigation matters arising between business rivals in jurisdictions throughout the U.S., including claims involving the violation of restrictive covenants, misappropriation of trade secrets, theft of electronic data, and breach of fiduciary duty. Our attorneys have represented clients in a wide variety of industries, ranging from start-up software companies to Fortune 500 manufacturing corporations.

We also frequently counsel clients on methods of protecting their competitive intelligence, eliminating or limiting potential liability when hiring their competitors’ employees, and negotiating creative and practical resolutions of disputes as an alternative to litigation where appropriate.

Select Recent Representative Cases

  • When a key executive of one of our corporate clients resigned to accept a job as the top executive of the company’s largest competitor in violation of a non-compete agreement, we immediately initiated litigation that resulted in the entry of a consent order preventing the defendant from pursuing employment within our client’s industry for 18 months.
  • Our clients, founders of a start-up software development company, were sued by a large publicly held corporation that claimed that our clients had misappropriated the idea for their software and were violating non-competition covenants entered into while they were employees of the plaintiff. We successfully defended a preliminary injunction motion that would have shut down our clients’ business and later won a judgment against the plaintiff for conversion of funds belonging to our clients.
  • Two employees of a computer staffing and consulting client left to form a competing business, violating their non-compete agreements and taking with them confidential commercial information. We obtained a preliminary injunction, upheld on appeal, restricting the defendants’ activities.
  • The district sales manager of a manufacturing client resigned to work for a competitor and immediately began soliciting our client’s customers in the Western United States. We brought suit against the former manager and his new employer and obtained a favorable settlement that protected our client’s commercial interests.