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Non Compete Intellectual Property Agreement

Non Compete Intellectual Property Agreement Template for Germany

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Key Requirements PROMPT example:

Non Compete Intellectual Property Agreement

"I need a Non-Compete Intellectual Property Agreement for a senior AI researcher joining our Berlin-based technology company in January 2025, with special focus on protecting our machine learning algorithms and ensuring they can't work for competitors in Germany and Austria for 2 years after leaving."

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Document background
The Non-Compete Intellectual Property Agreement under German law is essential for organizations seeking to protect their intellectual property rights and maintain competitive advantage while ensuring compliance with German legal requirements. This document is particularly crucial when engaging employees or contractors who will have access to sensitive intellectual property, trade secrets, or innovative technologies. The agreement must carefully balance the protection of company interests with German legal requirements, including mandatory compensation for non-compete restrictions (minimum 50% of last received benefits) and compliance with the German Employee Inventions Act (ArbnErfG). The document addresses IP assignment, confidentiality obligations, non-compete provisions, and inventions made during employment, while ensuring enforceability under German law. It's commonly used in technology-driven industries, research and development contexts, and situations where intellectual property protection is paramount to business success.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details for companies

2. Background: Context of the agreement, relationship between parties, and purpose of the agreement

3. Definitions: Detailed definitions of key terms, including 'Intellectual Property', 'Confidential Information', 'Competitive Activities', and 'Territory'

4. Scope of Non-Compete Obligations: Detailed description of prohibited competitive activities, geographical scope, and duration (maximum 2 years under German law)

5. Compensation for Non-Compete: Mandatory compensation details (minimum 50% of last received benefits) as required by German law

6. Intellectual Property Rights: Assignment and ownership of IP created during employment/engagement

7. Pre-Existing IP: Declaration and treatment of IP owned by either party prior to the agreement

8. Confidentiality Obligations: Protection of trade secrets and confidential information in accordance with GeschGehG

9. Employee Inventions: Handling of employee inventions in accordance with ArbnErfG, including notification and compensation requirements

10. Duration and Termination: Term of the agreement and conditions for termination

11. Remedies and Enforcement: Legal remedies in case of breach, including potential liquidated damages

12. Governing Law and Jurisdiction: Specification of German law as governing law and competent courts

Optional Sections

1. International Scope: Additional provisions for cross-border activities and international IP protection, used when activities extend beyond Germany

2. Industry-Specific Provisions: Special provisions related to specific industry requirements or regulations

3. Customer Protection: Additional provisions specifically protecting customer relationships, used when customer relationships are particularly valuable

4. Training Compensation: Provisions regarding specialized training costs and potential repayment, used when significant training investment is involved

5. Research and Development: Specific provisions for R&D activities and resulting IP, used in research-intensive relationships

6. Third Party Rights: Provisions regarding IP rights of third parties and licensing, used when third-party IP is involved

7. Data Protection: Specific GDPR compliance provisions, used when personal data processing is involved

Suggested Schedules

1. Schedule 1: Compensation Details: Detailed breakdown of non-compete compensation calculation and payment terms

2. Schedule 2: Pre-Existing IP: Comprehensive list of pre-existing IP owned by each party

3. Schedule 3: Restricted Territory: Detailed description and/or maps of geographical areas covered by non-compete obligations

4. Schedule 4: Restricted Activities: Detailed list of specific prohibited competitive activities

5. Schedule 5: Invention Disclosure Form: Template for reporting new inventions as required by German Employee Inventions Act

6. Appendix A: Confidential Information: Detailed categorization of confidential information covered by the agreement

7. Appendix B: IP Assignment Forms: Standard forms for documenting IP assignments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Affiliated Company
Background IP
Competitive Activities
Competitive Business
Compensation
Confidential Information
Copyrights
Customer
Database Rights
Design Rights
Developed IP
Effective Date
Employee Invention
Engagement
Excluded Activities
Foreground IP
Group Company
Intellectual Property Rights
Invention
Know-How
License
Non-Compete Period
Patents
Pre-Existing Works
Prohibited Territory
Restricted Business
Restricted Customer
Restricted Period
Service Invention
Software
Technical Information
Term
Territory
Trade Marks
Trade Secrets
Work Products
Works
Clauses
Definitions
Interpretation
Duration
Non-Compete Obligations
Non-Compete Compensation
Intellectual Property Assignment
Pre-Existing IP
Employee Inventions
Confidentiality
Trade Secrets Protection
Territory Restrictions
Consideration
Warranties
Representations
Notification Requirements
IP Registration
License Grants
Enforcement
Remedies
Liquidated Damages
Termination
Survival
Assignment
Severability
Governing Law
Jurisdiction
Entire Agreement
Amendment
Waiver
Force Majeure
Notices
Data Protection
Relevant Industries

Technology

Software Development

Biotechnology

Pharmaceutical

Research and Development

Manufacturing

Engineering

Chemical Industry

Automotive

Medical Devices

Artificial Intelligence

Financial Technology

Electronics

Telecommunications

Professional Services

Industrial Design

Clean Technology

Digital Media

Robotics

Semiconductor

Relevant Teams

Legal

Research & Development

Product Development

Innovation

Engineering

Software Development

Design

Technical Operations

Intellectual Property

Scientific Research

Information Technology

Data Science

Architecture

Systems Engineering

Professional Services

Relevant Roles

Software Developer

Research Scientist

Chief Technology Officer

Product Manager

Research Engineer

Data Scientist

Technical Lead

Innovation Manager

Senior Engineer

Principal Architect

Head of R&D

Technical Consultant

Design Engineer

Chief Scientific Officer

Development Manager

AI Researcher

Biotechnology Researcher

Systems Architect

Industrial Designer

Patent Engineer

Industries
German Commercial Code (Handelsgesetzbuch - HGB) §§ 74-75h: Regulates post-contractual non-compete agreements, including mandatory compensation requirements (typically 50% of last received contractual benefits) and maximum duration (2 years)
German Civil Code (Bürgerliches Gesetzbuch - BGB) §§ 241, 242: Establishes general principles of contract law, good faith, and reasonableness requirements for contractual obligations
Patent Act (Patentgesetz - PatG): Governs the protection of inventions and technical innovations, including employee inventions and their assignment
Copyright Act (Urheberrechtsgesetz - UrhG): Regulates protection of creative works, software, and other copyrightable materials created during employment
Trade Secret Act (Geschäftsgeheimnisgesetz - GeschGehG): Implements EU Trade Secrets Directive, protecting confidential business information and know-how
Act on Employee Inventions (Arbeitnehmererfindungsgesetz - ArbnErfG): Specific regulations for inventions made by employees during employment, including compensation and assignment rights
German Constitution (Grundgesetz - GG) Article 12: Protects freedom of occupation and profession, limiting excessive restrictions on employment opportunities
Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb - UWG): Provides framework for fair competition and prevents excessive restrictions on competitive activities
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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