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With my current employer, my team and I hire a contractor to do some important ongoing work. As I work with this contractor, read their proposals, and interview them, I now have a pretty intimate knowledge of how they work and what they do to fulfill our contract. I'm considering leaving my job to compete for that contract, but it seems unfair for me to have so much knowledge about my potential competitor. What legal issues do I need to watch out for if I do compete with them?
May 12, 2023
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Bill HenryFounding Partner | 18 years of experience
Profile Picture of Attorney Bill Henry
Profile Picture of Attorney Bill Henry
Bill HenryFounding Partner 18 years of experience

It is impossible to predict ahead of time exactly what a third party will do if you compete against them using insider information. So, the following information is only a general list of possible claims. Not everything may apply to you, and of course additional claims could be brought depending on the particular facts of the case. __Good faith and fair dealing:__ The implied covenant of good faith and fair dealing is a general presumption that the parties to a contract will deal with each other honestly, fairly, and in good faith. __Non-compete agreements:__ Many employment contracts contain non-compete agreements that restrict employees from competing with their former employer for a certain period of time after leaving the company. Often, these contain non-disclosure agreements that may prohibit you from using any information you have learned in your course of employment. __Trade secrets:__ Trade secrets are any type of information that gives a company a competitive advantage, such as customer lists, pricing information, or trade secrets. __Misappropriation of confidential information:__ Even if you do not have a non-compete agreement or trade secrets, you may still be liable for misappropriation of confidential information if you use or disclose confidential information.

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