Publications

Non-competition Agreement

 

One issue is whether the parties will agree not to compete with one another or the venture entity during or for some period of time after the termination of the venture. Noncompetition provisions could apply based on customer or geographic boundaries. For example, if one party to a joint venture has a pre-existing customer relationship prior to entering the joint venture, will the other party be precluded from working with that customer after termination of the venture? If two parties that have preexisting operations in different geographic territories form a joint venture, will each party be prohibited from operating in the other party's territory after termination of the joint venture?