International Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

International Non Compete Agreement

"I need an International Non Compete Agreement for our California-based software company to restrict our outgoing CTO from working with competitors in the USA, UK, and Japan for 18 months starting March 2025, with specific provisions protecting our AI technology patents."

Document background
International Non Compete Agreements are essential tools for multinational companies operating in the United States and abroad to protect their business interests, intellectual property, and market position. These agreements become particularly crucial when employees have access to sensitive information, international client relationships, or proprietary technology. While subject to U.S. federal and state laws, they must also comply with local regulations in relevant foreign jurisdictions. The agreement typically includes specific restrictions on competitive activities, geographic scope, duration, and consideration provisions to ensure enforceability across different legal systems.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background/Recitals: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Restrictions: Detailed description of prohibited competitive activities

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Territorial limitations of the restrictions

7. Consideration: Value provided in exchange for non-compete obligations

8. Confidentiality Obligations: Protection of confidential information and trade secrets

9. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Garden Leave: Provisions for paid leave period during restriction time - typically used when dealing with senior executives or key employees

2. Non-Solicitation: Restrictions on soliciting employees/customers - used when protecting customer relationships is crucial

3. Severability: Provisions for partial enforcement if parts are invalid - particularly important when agreement covers multiple jurisdictions

4. Assignment Rights: Rights to transfer the agreement - relevant when corporate restructuring is possible

Suggested Schedules

1. List of Restricted Competitors: Specific companies/entities considered competitors

2. Territorial Maps/Descriptions: Detailed geographic scope illustrations

3. Consideration Schedule: Details of compensation or benefits provided

4. Jurisdiction-Specific Requirements: Local law compliance requirements by territory

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

Industries

Sherman Antitrust Act: Federal law that prohibits anticompetitive business practices and excessive restraints on trade. Must be considered to ensure non-compete provisions don't violate antitrust regulations.

Federal Trade Commission Act: Federal legislation that prohibits unfair methods of competition and deceptive practices. Relevant for ensuring non-compete terms are fair and reasonable.

Defend Trade Secrets Act (DTSA): Federal law providing uniform trade secret protection across the US. Critical for provisions relating to confidential information protection in international contexts.

State Non-Compete Laws: Various state-specific regulations governing non-compete agreements, with significant variations in enforcement and restrictions (e.g., California's prohibition under Section 16600).

EU Competition Laws: European Union regulations governing competition and trade restrictions. Must be considered when the agreement involves European jurisdictions.

GDPR Compliance: European Union's General Data Protection Regulation affecting how personal data can be handled in international agreements involving EU parties.

Reasonableness Requirements: Legal principle requiring non-compete restrictions to be reasonable in terms of duration, geographic scope, and scope of prohibited activities.

Geographic Scope Limitations: Legal requirements for defining and limiting the territorial scope of non-compete restrictions based on legitimate business interests.

Time Duration Restrictions: Legal limitations on the temporal scope of non-compete agreements, typically requiring reasonable time limits based on industry standards and business needs.

FTC Proposed Rule: Recent Federal Trade Commission proposed rule to ban non-compete clauses in employment contracts, which may affect future enforceability.

Choice of Law Provisions: Legal clauses determining which jurisdiction's laws will govern the agreement and where disputes will be resolved.

International Trade Secret Laws: Various international regulations and treaties governing trade secret protection across borders, including TRIPS Agreement provisions.

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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