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Question
Posted by: Anon | 2010/01/06

Restraint of trade

How does restraint of trade work?

Say I work for company A that has product X that is used in a specific business environment, e.g. telecommunications. If I go and work for company B (a customer of company A) and develop a new product (not the same as product X) that is also used in telecommunications, am I in breach of my restraint of trade clause with company A? If I develop a product that provides the same functionality as product X, but which works differently, am I in breach of my restraint of trade clause with company A?

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Our expert says:
Expert ImageLabour lawyer

RE: RESTRAINT OF TRADE

A restraint of trade is specifically worded in each different case and is designed to protect a business from unfair competition. Your restraint of trade agreement will not be the same as anyone else and you specifically need to have an attorney carefully assess the restraint of trade agreement and assess the areas of restraint. These agreements are nortoriously difficult to advise upon and cannot get an answer on a generic basis.

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Our users say:
Posted by: labour lawyer | 2010/01/18

RE: RESTRAINT OF TRADE

A restraint of trade is specifically worded in each different case and is designed to protect a business from unfair competition. Your restraint of trade agreement will not be the same as anyone else and you specifically need to have an attorney carefully assess the restraint of trade agreement and assess the areas of restraint. These agreements are nortoriously difficult to advise upon and cannot get an answer on a generic basis.

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