| Read Time: 3 minutes | #Trade Secrets

How Specifically Must a Trade Secret Be Identified Under Texas Law?

In Texas, a business and/or employer can bring a claim for misappropriation of trade secrets if a competitor or employee acquires a business’s trade secrets improperly or uses them without permission.  Tantamount to establishing a misappropriation of trade secrets claim is establishing that a trade secret, in fact, existed. Under Texas law, a “trade secret” is defined as follows:...

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| Read Time: < 1 minute | #Noncompete Agreements

Can A Noncompete Be Extended If It Is Violated?

Many noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the time an employer discovers...

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| Read Time: 3 minutes | #Noncompete Agreements

Who Can Get Attorneys’ Fees in a Non-Compete Action?

Under Texas law, parties may only be entitled to recover their attorneys’ fees if permitted by statute, by a contract between the parties, or under equity. At times, there may be multiple avenues for a prevailing party to receive attorneys’ fees. However, at other times, a statute may preempt, or override, every other avenue to attorneys’ fees. Actions for...

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| Read Time: 3 minutes | #Physician Contracts

Do All Physician Non-Competes in Texas Require a Buyout Provision?

Under Texas law, non-compete agreements involving a physician in some situations must include a handful of provisions (“requirements”) in order for the non-compete to be enforceable.  One such requirement is that a physician non-compete agreement must contain a buyout provision.  When must a buyout provision be included? Are requirements like buyout provisions required in all non-competes involving a physician,...

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| Read Time: 2 minutes | #Noncompete Agreements

Geographic Limitations on Texas Non Competes?

Worldwide Geographic Restriction of Texas Noncompete Agreements May Be Enforceable Last revised: 10.17.16 In the past, Texas courts have not fully embraced the ability of a non-compete agreement to restrict an employee from working anywhere in the world.  In several cases, Texas courts have held that the proper geographic scope of a noncompete agreement is the territory in which...

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| Read Time: 2 minutes | #Contracts

What are the Statue of Limitations in Texas Breach of Contract Cases?

In Texas, the statute of limitations for breach of contract is four (4) years.  The period begins from the day the contract was breached. What is a statute of limitation? The statute of limitations first appeared in early Roman law. It later developed into the criminal and civil common law of England. The purpose of the statute of limitations in a...

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| Read Time: 2 minutes | #Settlement Agreements

Fraudulent Inducement & Settlement Agreements Under Texas Law

Settlement Agreements: Fraudulent Inducement and the Duty to Read Your Contract Settlement agreements are contracts. They impose binding obligations on both parties. Consider the following example:  Employer sues ex-employee for breach of non-compete. Employee files a counterclaim for unpaid sales commissions. Eventually, the two parties sign a settlement agreement. As part of the settlement agreement, the parties agree to release all...

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| Read Time: 3 minutes | #Trade Secrets

Six Ways to Make a Trade Secrets Claim in Texas

As an employer, your trade secrets are the heart of your business.  Knowing every manner available to protect those trade secrets could make a big difference in future of your business.  A claim for misappropriation of trade secrets is one way an employer can protect its interests. Under Texas law, a misappropriation of trade secrets claim not only can...

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| Read Time: 2 minutes | #Trade Secrets

Vendor Lists as Trade Secrets in Texas

Many businesses have a list of vendors or suppliers they routinely use in the course of business.  This list of vendors is often compiled after years of effort and references the vendors that the business knows to sell high quality products at a good value.  Arguably, this information is a trade secret because it could only have been discovered after many years...

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| Read Time: 2 minutes | #Noncompete Agreements

Possible Tort Claim Not Sufficient Consideration for Noncompete in Texas

In recent years, Texas courts have shown support for the employer’s use of non-compete agreements. The courts have done so by finding certain requirements of enforceability implied in non-compete agreements in some circumstances. Despite this trend, in June 2015, the federal appellate court that covers Texas ruled that a duty to keep information confidential cannot be assumed into a...

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