FTC Faces Calls for IP Carveouts in Noncompete Ban Rulemaking

The FTC’s proposal to ban noncompete agreements is triggering intellectual property attorneys’ concerns that it fails to include trade secret protection exceptions that President Joe Biden had pledged.

Intellectual property and trade secrets experts—and the companies they represent—will likely push the issue, including some exceptions to the ban, to the forefront during the Federal Trade Commission’s 60-day comment period and subsequent deliberations. One of the solutions they likely will pitch would be to permit noncompete agreements for workers making more than a certain amount per year.

The FTC’s notice of proposed rulemaking would make illegal all employee agreements that prevent ...