• Nonetheless, post-employment restrictive covenants can be a valuable tool in
seeking to prevent this type of mishap,
and should be regularly reviewed by
counsel to ensure that proper agreements are in place, not only to protect
legitimate customer, vendor, and employee interests, but also to help protect proprietary information — both
hard copy and electronically stored
• Given the ever-changing landscape of
the law on post-employment restrictive
covenants (in large part tightening the
noose around the neck of post-employment restrictive covenants), this type
of “audit” should be undertaken on a
regular basis, and upgrades made to
protect legitimate business interests. A
state-by-state analysis is critical.
• Similarly, attention to small details
should be regularly audited. A docket
should be maintained of all foreign
entity registrations and business license
renewals, just as much as one is for tax
filings and insurance payments.
• The same holds true for state and/or
federal trademark registrations –
which at the federal level require for
example the filing of affidavits of continued use, and the payment of fees,
and which vary at the state. Assumed
business names and similar filings must
also be regularly audited for compliance with state requirements and fee
Finally, all businesses have, use and
rely on proprietary information, some of
which may rise to the level of a protect-able trade secret, under various laws, and
much of which is stored on computers. An
annual check-up of the nature and stor-
age of such information, and policies and
agreements that are related to the use,
access to and maintenance of such assets,
is likewise critical to any business.
For those distributors interested in this
topic, please contact Fred Mendelsohn at
firstname.lastname@example.org or 312-840-
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