Non-Compete Clauses in the Sale or Dissolution of a California Company or Partnership
Generally speaking, non-compete provisions are invalid in California, though they are valid in many other states. California is a labor-friendly state and does not want employers to be able to restrict former employees’ ability to earn a living. So in most cases,...
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License Agreement Allows Use of Patented Technology
Tandem Diabetes Care, Inc., a medical device company based in San Diego, California, that develops and manufactures products for people with diabetes who use insulin, recently entered into a license agreement with TypeZero Technologies LLC, a “digital health and personalized medicine...
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Joint Venture Agreements versus Partnerships in California
Joint ventures, which allow companies and individuals to combine resources for the purpose of pursuing a specific business project, are distinct from partnerships which conversely provide for an ongoing business enterprise. Furthermore, in joint ventures, each party has the ability to...
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Important Considerations in Drafting Reseller Agreements
On July 26, 2016, Systems Applications Products (SAP) and Ricoh Innovations Corporation (RIC), a technology company headquartered in California’s Silicon Valley, announced that the two companies had signed a global reseller agreement to allow SAP to resell RIC’s image recognition platform as an...
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How to Give Equity to a Service Provider in California
A common consideration for business owners, especially for owners who have just started their business or are still in the startup phase of development, is whether or not to give a service provider equity in the business as opposed to paying them...
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How Representation Works in Shareholder Agreements, Operating Agreements and Other Company Founding Documents
Many people do not realize that an attorney would have a conflict of interest in representing all or even some of the owners of a company in drafting or reviewing the founding document(s) for a company. It is perfectly acceptable for one...
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How Distribution Agreements Can Be Structured
If you are a manufacturer or supplier and want to work with a reseller or retailer to sell your products, a distribution agreement is a necessary tool that can allow you to control the path of your products to market. For instance,...
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GM’s Acquisition of Cruise Nearly Disrupted: The Importance of Operating Agreements for California Startups
On May 13, 2016, General Motors officially acquired self-driving car startup Cruise for approximately $1 billion, however, the sale almost fell through because the company failed to document properly the scope and involvement of an alleged co-founder, Jeremy Guillory. On May 8, just five...
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Getting Familiar with Your Estate Plan During Your Down Time
They say right now is always the best time to take care of your estate plan. For most of us, “right now” is bogged down with work and other responsibilities. If the lockdown at home is allowing you to knock some things off...
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Employee Confidentiality Agreements in California
Confidentiality agreements in the context of employer-employee relations can prove to be most beneficial after an employee’s employment with a company has come to an end. For instance, SolarCity Corp., a company based in California, recently filed suit against a former...
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COVID-19: Contractual Issues & FAQS
As we navigate the historic challenges of COVID-19, with social distancing and other restrictions wreaking havoc on many businesses and our economy at large, the issues surrounding business contracts are front and center. Many are concerned about their business’ ability to fulfill obligations under contracts they have executed, from client service agreements...
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Contemplating Enforcement and Disputes when Drafting Contracts with International Parties
While it is always important to have a well-drafted contract, complications with enforcement of a contract can arise when one party is not based in the United States. In California you often see this come up where a party is working...
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