California | Business Law
Legal Question
non-disclosure and competing in business
I have owned a software company since 1993. About 3 years ago, I began developing an Internet software licensing system. Before it was completely developed, I began marketing it.
About year ago, I pitched it to a firm that rents engineering software on a website. We set up a meeting and signed a mutual non-disclosure agreement. They were interested, and we had several conversations about how they could use the system, but we never came to a usage agreement for their website.
With a ''one-time'' contract (nothing in it other that the split of revenue), they did use my license system to rent software to one client. They requested to add ''billing by project'' to my system, so I did.
In the meantime, I have signed up several other clients to use my system, and virtually all of them have requested billing by project.
After they found out that I had other clients, they are now claiming that I infringed on our non-disclosure agreement because it was their idea to add billing by project. They have since hired their own programmers to develop a system for their rental website and don't want me competing with them by offering this ability.
Can they stop me from selling my system any way that I see fit?


