David Pardue, Patti Bartis, and Sarah Hutchins offered practical tips in Life Sciences Intellectual Property Review on how companies can navigate the rising wave against noncompete agreements. 

"In 2023 noncompetes and other restrictive covenants have faced a tidal wave of criticism, from the White House to state legislatures," they wrote. "The Federal Trade Commission is not waiting to finalize or debate its proposed noncompete ban before stepping up enforcement against businesses. The FTC has already filed at least four enforcement actions this year 'against companies that use harmful noncompetes,' as the agency put it in one press release. The FTC is targeting what it considers overly restrictive agreements."

"The National Labor Relations Board is also riding the wave, as are state legislatures," they continued. "Noncompetes were even called out in this year’s State of the Union speech, the traditional testing ground for executive branch policy. And while noncompetes have received most of the headlines, the criticism is impacting related restrictions such as nondisclosure agreements as well."

"What does all this mean for life sciences businesses?" they wrote. "Regardless of whether the FTC’s proposed ban goes into effect, the trends are clear: companies need to update their policies to protect their competitive advantages and sensitive information. For life sciences companies in particular — who often possess a treasure trove of highly valuable and proprietary information — now is the time to ensure the latest best practices are followed to protect trade secrets and defend against unfair competition."

Subscribers can read the full article here: Navigating the rising wave against non-competes

Based in the United Kingdom, Life Sciences Intellectual Property Review reaches a global audience of general counsel and other lawyers serving the life sciences industry. 

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