Are partners really self employed?
2 October 2018
We are often asked to bring or defend a court injunction. Not all cases will be successful in court. Others stand a good chance of resolution outside of court to avoid litigation. To help you gauge how the courts look at matters we have summarised some common scenarios involving court injunctions.
An employment agreement includes provisions designed to protect intellectual property. The contract creates a restriction the use of around all intellectual property created during the course of the employee’s engagement by providing that such work vests in the employing company. The employer terminates the employee’s employment, and on day 2, the employee launches a new software model created outside working hours.
The restrictions apply whilst the individual is a shareholder, and for two years thereafter under the shareholders’ agreement. The shareholder disposes of his shares, and then takes customers and trade secrets. Here, it is difficult to quantify the monetary loss. But, there is a shareholders’ agreement which includes restrictive covenants. Those restrictive covenants prevent shareholders stealing trade secrets and customers.
The owner of a high value software company outsources development work. The work is completed, and is not up to standard. The software has malfunction issues and does not operate as intended. The owner of the company had intended to licence the software for a fixed fee. As a result, licensees will not accept the software for the fixed fee suggested. A reduced fee is agreed. The software company could apply for a mandatory injunction forcing the developer to remedy the defects. However, the developer could compensate the company for the reduced licence fee.
The team reviewed my case and explained the difficulties I would face. I was grateful for the frank advice which ended up saving a lot of time.