Enjoy the First Day at Your New Job
Gene Codes Corporation, an international software firm specializing in bioinformatics software for DNA sequence analysis, filed suit on December 1 against its former Global Manager: Customer Care and Training. The complaint includes allegations of breach of contract and misappropriation of trade secrets under MUTSA (Michigan Uniform Trade Secret Act, MCL s. 445.1901 et seq.), and requests entry of a temporary restraining order, preliminary and permanent injunction, and attorneys fees. Among other things, MUTSA provides for injunctive relief to prevent threatened misappropriation of trade secrets. See, MCL s. 445.1903.
According to the complaint, the manager was one of four Gene Codes employees who had access to both of two highly sensitive databases: the database of bugs, bug fixes and feature proposals, and the customer, sales and lead tracking database. The manager submitted her resignation to Gene Codes on November 12, 2009, and indicated that she would begin a new job with CLC bio on December 1. CLC bio is also an international company that, among other things, provides bioinformatics software for DNA sequence analysis.
The manager is alleged to have signed an employment agreement while at Gene Codes. That agreement, attached to the complaint, prohibits solicitation of Gene Codes clients as well as competition with Gene Codes for a period of two years. In Michigan, the validity of a noncompete agreement is governed by section 4a of the Michigan Antitrust Reform Act, and related cases. Reasonable noncompete agreements will be enforced, and the specific facts of the case, such as the duration and geographical scope of the restriction, and the type of employment or line of business, will be analyzed to assist in the determination of reasonableness. See MCL s. 445.774a.
The manager has not yet filed an answer to the complaint.