Bloomberg Law
Oct. 19, 2021, 9:07 AM

Trade Secrets Cases Shoving Aside Noncompetes Amid High Turnover

Kyle Jahner
Kyle Jahner
IP Reporter

A recent North Carolina state court ruling that ex-employees of an HVAC company could be liable for stealing trade secrets like customer lists—but not for calling those customers in violation of a covenant—was an outcome fitting an emerging trend.

Companies that feel exploited by former employees helping a rival increasingly turn to trade secrets claims for relief, as restrictive employee covenants fall out of favor. In recent months that has combined with a spike in pandemic-spurred employee movement to fuel a rise in trade secrets cases, attorneys say.

Noncompete and non-solicitation agreements that bar employees for a period from joining ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.