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Former employee has copied our business website

Discussion in 'Legal Issues' started by CCK, Jun 2, 2010.

  1. #1
    An employee has left the business and set up a website in direct competition providing identical services. They have even copied the price structure and basic business model. Is there anything we can do? He is based less than 10 miles from us now.

    The employee knew nothing of this niche market before working for us. Is there any intelectual property theft? His site contains similar content so is there a copyright theft?

    What could i do and what would you do?
     
    CCK, Jun 2, 2010 IP
  2. phpwnes

    phpwnes Peon

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    #2
    contact him about it or if you don't mind paying the money then consult a lawyer.
     
    phpwnes, Jun 2, 2010 IP
  3. CCK

    CCK Active Member

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    #3
    I have no problem contacting a lawyer in due course. Just wondering what laws have been broken and if anyone has experience of this.

    I object to someone trying to take money from my families pockets when I was good enough to pay them a wage to feed their family.
     
    CCK, Jun 2, 2010 IP
  4. blogginggenius

    blogginggenius Well-Known Member

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    #4
    Yes, I've experienced this kind of thing a lot with my clients. I am not a lawyer, but have an extensive experience in DMCA laws. If there is indeed copied content, we can take him down within 48 hours if he's situated within the US. You can PM me for free help or if you'd like me to handle it for you; I charge a small fee. By the way, I'm strictly talking here about the website. If you're talking about his office or whatever then you need to see a lawyer.

    Good luck. :)
     
    blogginggenius, Jun 2, 2010 IP
  5. peoplesmind

    peoplesmind Active Member

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    #5
    The web site, if it's very close / identical--is a DMCA violation. But as far as him stealing your business plan / idea / niche, if you're a registered company in the U.S. (LLC, Inc., or even a sole proprietorship) you *can* make employees sign business contracts that don't allow them to work in the same industry if they quit (as opposed to get fired). That's something that you would have to have done before he started working for you. Even if you did that though--I live in Florida and it's called a "Right to Work" state, meaning parts of those contracts in some states won't hold up in court anyway.

    GL!
     
    peoplesmind, Jun 2, 2010 IP
  6. Business Attorney

    Business Attorney Active Member

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    #6
    Your former employee cannot infringe your intellectual property to the extent that it is protected by copyright, trademark or patent. But copyright and trademarks do not protect ideas, and patent protection is available only to certain novel inventions that have gone through the patent registration process. In other words, copying your business model and pricing structure alone does not typically violate any protected intellectual property rights.

    If you don't have a non-competition agreement with your former employee, then you are probably out of luck in terms of keeping him from directly competing with your business as long as he avoids copying your content or infringing your trademarks. Even if you had a non-competition, enforcing one is often an uphill battle. In some states (e.g., California), such contracts with employees are completely unenforceable. In others, you have to prove that the restrictions are reasonable in duration, scope and geographic area to protect a "protectible interest."

    Since the law varies greatly from state to state and the specific facts are very important, you need to discuss your rights with an attorney in your jurisdiction.

    Be prepared, however, to discover that what he is doing is perfectly legal. It is pretty common for people working in a business to decide that they want to break out on their own. How many auto mechanics started out with their own shop? Beauticians? Chefs? A huge percentage of small business owners learned their crafts as employees for someone else.
     
    Business Attorney, Jun 2, 2010 IP
  7. blogginggenius

    blogginggenius Well-Known Member

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    #7
    I couldn't agree more with you, Business attorney. However, I quote from OP:

    "His site contains similar content"

    If what he previously stated is all what that "content" is, then DMCA can't help. However, if there is content like articles, website design, logo, word for word descriptions and sales pitches then YES, you can take him out with a DMCA (speaking from personal experience) here. :)
     
    blogginggenius, Jun 2, 2010 IP
  8. allthatjazz

    allthatjazz Guest

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    #8
    i really don't see what's wrong with it, expect him copying your web site, a ton of my employees have left our company in last 7 or 8 years , and are doing rather well for them selves in that niche , it makes makes my day when they come across me sometimes and still call me ' boss' or 'sir', and have the same respect .

    what is work with out any competition !!
     
    allthatjazz, Jun 2, 2010 IP
  9. UNBREAKABLE

    UNBREAKABLE Peon

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    #9
    Whats your website and Whats his website?
     
    UNBREAKABLE, Jun 4, 2010 IP
  10. jacquem

    jacquem Guest

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    #10
    I don't think he will divulge that. It's like shooting his own foot if he did.
     
    jacquem, Jun 5, 2010 IP
  11. SwimFinn

    SwimFinn Peon

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    #11
    If he has exact copies of material which your company created, your company owns the copyright on that material. Not everything is protected by copyright (lists of facts, phone directories). Also, if your company bought non-exclusive copies of photos from someone else then he might have bought his own copies... and your company might not hold the copyright on photos anyway unless they bought the copyright from the photographer.
     
    SwimFinn, Jun 6, 2010 IP
  12. CCK

    CCK Active Member

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    #12
    As this may lead to a legal dispute I will refrain from providing my website details. I have sent some 'under cover' emails and it would appear that this person may be using some of our documentation. Part of the service requires the provision of a legal document. This has no prescribed format yet the previous employee has replied with a sample that is a direct copy of our format.

    Part of me agrees with allthatjazz in his post above - Let this person have a go and make their own business.
    Part of me thinks - Cheeky sod - We paid him, trained him and after a few months he starts his own website in a Niche he knew nothing of previously. A letter from my solicitor may give him a scare.
     
    CCK, Jun 7, 2010 IP
  13. SwimFinn

    SwimFinn Peon

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    #13
    This is why many employment agreements include clauses about noncompetition and training value.
     
    SwimFinn, Jun 7, 2010 IP
  14. windy

    windy Active Member

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    #14
    if he doesn't use exact copies of your site but just use same ideas then it's difficult to stop him
     
    windy, Jun 9, 2010 IP
  15. sketchx

    sketchx Member

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    #15
    Nice informative post, even if not using the exact copies, the guy is sitting on a thin line, there seem to be enough for a legal procedure.
     
    sketchx, Jun 9, 2010 IP
  16. CCK

    CCK Active Member

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    #16
    Thin indeed. Wheels are in motion. It is likely that action will be taken in the next week or two. I will keep you informed of progress.
     
    CCK, Jun 11, 2010 IP
  17. DubDubDubDot

    DubDubDubDot Peon

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    #17
    There is of course more to running a business than knowing how to perform the service for clients. If this guy doesn't grasp the backend aspect then he is of little threat.

    If your employee went from total newbie to threatening competitor in the span of 3 months, then you may have trained him too well. Don't give employees the keys to the kingdom.
     
    DubDubDubDot, Jun 15, 2010 IP
  18. magicman85

    magicman85 Peon

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    #18
    did you make him sign a no compete agreement before hiring him
     
    magicman85, Jun 17, 2010 IP
  19. Rocky0007

    Rocky0007 Peon

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    #19
    Well this things which you were mentioned, are not under any copy right Acts as these all general thing which you are claiming he theft.
     
    Rocky0007, Jun 20, 2010 IP
  20. xanth

    xanth Active Member

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    #20
    If someone copied your website and it's close enough that you believe he copied copyrightable items, e.g. actual text is identical, copied sections of code that would be obvious they must have been copied, then if you can identify those areas specifically, send a DMCA takedown notice. Instructions and information is here:

    http://www.thelaw.com/guide/how-to-write-send-a-dmca-takedown-notice/

    You've got all you need right there. If you can't fill out the entire notice, then what is copied may not be illegal even though it is certainly unethical. In the future, if your business info and list is proprietary and confidential, get a non-disclosure at the very least and hopefully a non-compete.
     
    xanth, Jun 20, 2010 IP