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        Other >> IP Forms and Agreements >> During severance package time..
        
(Message started by: jolly_cow on Mar 7^th, 2007, 10:08am)

Title: During severance package time..
Post by jolly_cow on Mar 7^th, 2007, 10:08am

My friend got laid-off recently during a major re-org/RIF
at his company.

He shall be on the (ex) company's payroll as a part of
severance package for a couple of months.

His HR lady said the following

==========Quote===========
Finding employment is up to you. You would just need to keep in mind
the post-employment obligation memo related to your
confidentially/proprietary agreement you signed when you started with XYZ company (his current/ex-company)
=================================

While my friend would like to start working on his start-up which including filing atleast prov patents; does he need to wait till the severance package-period is over? His start-up wont compete in product space of his current/ex employer nor uses his ex-company's proprietary or confidential info.

Thanks in advance!

Title: Re: During severance package time..
Post by biopico on Mar 7^th, 2007, 5:55pm

For several reasons, I would wait.

Title: Re: During severance package time..
Post by jolly_cow on Mar 7^th, 2007, 6:40pm

>> For several reasons, I would wait.

Biopico, thanks! What in your opinion is the min period
to wait? immediately after severance package period?
or wait 2 weeks more?

What is a typical wait that folks in similar situation
would wait; in your opinion?

Again, thanks a million.

Title: Re: During severance package time..
Post by biopico on Mar 7^th, 2007, 7:44pm

Immediately after or two weeks after doesn't really make a difference. I would just make sure that I begin a start up company when I have no obligation to my ex whatsoever.

Title: Re: During severance package time..
Post by JSonnabend on Mar 8^th, 2007, 7:01am

Wow! That's some succinct advice, Biopico! Have you read the agreement? Do you know what the terms are? Do you know how, if at all, the startup's business would be related to the former employer's business? Do you know what's involved in "start-up"?

The answer is "no" to all those questions, so your advice is worth about as much as my dog's.

To the OP: your friend's best bet is to speak with an attorney who can review the actual employment agreement and all the pertinent facts and advise him/her based on the facts, not supposition. Off the cuff advice from some anonymous on-line pseudo expert isn't worth anything.

- Jeff

Title: Re: During severance package time..
Post by biopico on Mar 8^th, 2007, 8:02am

on 03/08/07 at 07:01:02, JSonnabend wrote:

Jeff, under the circumstances given in this forum, I don't need to know any of the details, which require special circumstances. You must have waken up on the wrong side of bed this morning.

Title: Re: During severance package time..
Post by JSonnabend on Mar 8^th, 2007, 8:27am

on 03/08/07 at 08:02:51, biopico wrote:

Jeff, under the circumstances given in this forum, I don't need to know any of the details, which require special circumstances. You must have waken up on the wrong side of bed this morning.

Ok, but why give worthless advice? Without any of the details, that's all you're doing. What a waste of everyone's time that is.

- Jeff

Title: Re: During severance package time..
Post by biopico on Mar 8^th, 2007, 8:38am

on 03/08/07 at 08:27:20, JSonnabend wrote:

Ok, but why give worthless advice? Without any of the details, that's all you're doing. What a waste of everyone's time that is.

- Jeff

I hope you will be having a nice Thursday morning and afternoon! If I invoke your annoyance this morning, I am sorry for it.

My whole point was/is: timing to fight or to start a business is important!

Title: Re: During severance package time..
Post by Wiscagent on Mar 8^th, 2007, 9:22am

I too do NOT know the details of this individual's contractual obligations to his former employer. Nevertheless, typical confidentially/proprietary information employment agreements involve on-going obligations for the employee. It is likely that the former employee must respect the former employer's IP rights even after severance payments have ceased.

Whether or not this should impact the former employee’s timing for a new business, I have no way of knowing.

Title: Re: During severance package time..
Post by jolly_cow on Mar 8^th, 2007, 3:41pm

Dear All,

Thanks a lot for jumping into the thread. I do appreciate
all your concerns and inputs.

My friend is _not_ stealing any from his former employer,
whether IP or copyrights or trade secrets. He never worked in the area (field) while employed that he is getting into.

Right now he totally cut off from company's resources,
though he will be under payrol for another 30-45 days.
All he is looking for is: when is the appropriate to launch.
Looks like at the minimum he needs to wait till all
formalities of severance package are over.

The agreement only asks for protecting company's IP,
tradesecrets etc. but does not talk about any non-compete in particular.

He will most likely follow up with an attorney to review.

Can you legal gurus shed some light on red flags that are
commonly seen in the severance package/agreements
that cause impediments to folks such as my friend, launching the start-up? More over, I "heard" that courts usually favor laid-off employees as they are let go by the company itself. Again I am not legal-guru!

Thanks once again to you all!!

Title: Re: During severance package time..
Post by JimIvey on Mar 8^th, 2007, 10:38pm

Like everyone else here said, it's realy hard to say without seeing the agreement, and you shouldn't post specific facts here unless you're not concerned about attorney-client privilege. In fact, forget that, I'm not sure I'd want to work under a spotlight where attorney-client privilege was gone. It's hard enough with the spotlight on my published work.

Things to think about: did the employment agreement specifically limit itself to innovations related to the employer's business or to any and all innovations? Does the state whose laws apply allow such clauses (any and all innovations)? I think my state (California) doesn't. My state is also pretty hostile to anti-complete clauses. Unfortunately, I don't do contract -- and specifically employment contract -- work, so I can't say. But contracts are creatures of state law. So, your friend's state matters.

If the start-up is expected to have any significant value whatsoever, a little paid time with an attorney experienced in these matters in the relevant state would be well worth it. Let's say the venture is worth several millions (8-9 figures over several years) -- most notable ventures are. Let's also recognize that litigation over such as issue is easily 5 figures and maybe well into the 6 figures. Now, let's compare $200-500 for an initial consultation. Is it really a hard decision?

Regards.

Title: Re: During severance package time..
Post by SoCalAttny on Oct 12^th, 2007, 10:22pm

I offer my standard legal advice on this matter, "shoot them and burn down the house".