Legal Question in Investment Law in California

can a major company like AAA sue me for starting a business similar to theirs?

Asked on 5/18/13, 5:27 pm

3 Answers from Attorneys

Andrew Harrell W. Andrew Harrell, Attorney at Law
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Possibly, they can sue you if you worked for them before and you entered into a non-compete clause. These clauses have to limited, however, in terms of how long you agree not to compete and in what geographical areas. They cannot be too broad. They can also sue you if there is a trademark confusion issue, e.g., you start a business under a similar name that might confuse the consumer.

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5/18/13, 5:32 pm
Charles Perry Law Offices of Charles R. Perry
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A potential competitor cannot successfully sue you simply because you enter into competition with them.

Other facts plus competition, however, may give rise to a right to sue. These include the theft of trade secrets and customer lists, the infringement on trademarks and other intellectual property, and the theft of employees are some common grounds.

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5/18/13, 11:13 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law
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I would tend to agree with Mr. Perry's answer.

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5/23/13, 4:03 pm

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