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Don't Get Knocked Out by a Non-Compete Agreement

Chelsea Lankford • November 30, 2023

Non-Compete Agreements in Texas: What You Need to Know

Non-compete agreements, often referred to as non-competes, are a common feature of employment contracts in Texas. These agreements are written to protect employers by restricting employees from working for competitors or engaging in similar professions for a specified period and within a defined geographic area after leaving their current job. Businesses contend that non-compete clauses are essential for safeguarding their interests and fostering industry-wide expansion. Yet, these contracts have sparked considerable debate lately. Opponents argue that they excessively hinder the movement of skilled professionals and curtail the opportunities available to employees.


Whether you represent a company striving to deliver the knockout punch, or you're part of an organization aiming to dodge it, there are critical factors to consider while enforcing or countering a non-compete agreement!


Non-Compete Clause Considerations

Non-compete agreements are enforceable as long as they meet certain legal criteria. The enforceability of non-compete agreements is primarily governed by the Texas Covenant Not to Compete Act. The key aspects of this law that pertain to the length of non-compete agreements are:


  1. Reasonable Time Period: The duration of the non-compete must be reasonable. Texas courts generally consider what is necessary to protect the employer's legitimate business interests. While there is no fixed time period set in the law, non-compete agreements typically ranging from six months to two years are often considered reasonable. However, the specific duration considered reasonable can vary depending on the industry, the employee's role, and other factors.
  2. Geographical Limitations: Along with time, the geographical scope of the non-compete must also be reasonable. It should be limited to the area where the employer operates and where the employee had influence or access to sensitive information.
  3. Scope of Activity Restrained: The scope of activities restrained by the non-compete should be limited to those that are competitive with the employer’s business and should relate to the employee's role in the company.
  4. Overall Reasonableness and Fairness: The non-compete must not impose a greater restraint than is necessary to protect the goodwill or other business interests of the employer.
  5. Consideration: The employee must receive something of value in exchange for agreeing to the non-compete, such as employment, a promotion, or a special training.


Employers should balance the need to protect their business interests with the rights of employees to pursue their careers. Overly restrictive non-competes can lead to legal challenges, damage employee relations, and harm the company's reputation. The non-compete should be designed to protect legitimate business interests, such as trade secrets, confidential information, or customer relationships, rather than merely to limit competition. The agreement should be clear and specific about what is prohibited. Vague or ambiguous terms can lead to legal challenges.

Employment Considerations With A Non-Compete Agreement

Exiting a non-compete agreement in Texas requires careful consideration of legal bindings and state-specific laws. It's possible to negotiate directly with an employer to modify or terminate the agreement, perhaps by offering to avoid working with specific clients. It's also crucial to review the contract for any unreasonable terms, such as overly long durations or broad geographic scopes, which Texas law may deem unenforceable. Consulting with an attorney specializing in employment law is vital, as they can identify weaknesses in the agreement and assist in seeking a declaratory judgment if there's uncertainty about its enforceability. If your employer has breached the employment contract, this could invalidate the non-compete. Additionally, significant changes in your job role or the business since signing the non-compete may affect its validity. Staying informed about Texas-specific laws and reforms concerning non-competes is essential, as these can influence the agreement's enforceability. Moreover, some employers may offer legal assistance or a bonus to help counteract the impact of an existing non-compete when negotiating a new job. Remember that each non-compete situation is unique, and enforceability can vary widely, making professional legal advice crucial.  Contact our Non-Compete Attorneys today!

Thinking Of Joining The Competition Or Enforcing A Non-Compete?

If you're considering working for a competitor but have signed a non-compete agreement, it's a situation that requires careful handling due to legal and professional implications. Here's what you should consider whether you are the one competing or the one preventing competition:


Review the details of your non-compete agreement. Please pay close attention to the duration of the non-compete, the geographical area it covers, and the specific types of work or roles it prohibits.

Consult with an employment attorney, preferably one specializing in non-compete agreements in your state. They can help you understand whether your contract is enforceable and advise on potential legal risks. In Texas, for example, non-compete agreements are enforceable if they are reasonable in scope, duration, and geographical area, and serve to protect legitimate business interests.

Sometimes, employers are willing to release employees from non-compete agreements, especially if you can negotiate terms that are favorable to them, such as agreeing not to solicit specific clients or share confidential information.

Discuss the situation with the potential new employer. Some companies offer legal assistance or agree to alter the job responsibilities to avoid violating the non-compete terms.

Be prepared for the possibility that your current employer may take legal action if they believe you are violating the non-compete agreement. This is where the advice from your attorney becomes crucial.

Consider the ethical implications of your decision. Even if a non-compete agreement is unenforceable, a professional reputation factor must be considered.

If there's uncertainty, your attorney might seek a declaratory judgment from a court to determine your rights before you make a move.

If there's a risk of litigation, be prepared for the potential financial impact. Legal disputes can be costly and time-consuming.

Remember, each situation is unique, and the enforceability of non-compete agreements can vary significantly based on individual circumstances and state laws. Professional legal advice is essential in making an informed decision. Contact our Non-Compete Attorneys today!


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Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. 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Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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The Wilson Legal Group are Dallas attorneys that specializes in Patents, Trademarks, Copyrights, Trade Secrets, Complex Litigation, Business/Corporate Law, Family Law and Real Estate Law. At the Wilson Legal Group, our clients are our focus. Our philosophy is simple and straight-forward: Understand our clients' needs, hopes, and interests in order to help them flourish. Our staff strives to build strong relationships with our clients in order to appreciate their best interests and help them achieve their goals.

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