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LES submitted comments to the FTC cautioning against adoption of its proposed ban on non-compete clauses. LES expressed the view that the FTC’s proposed blanket ban on all non-compete clauses is unduly broad, and fails to take into account the many valid and meritorious uses of non-compete clauses. In particular, LES explained that such a ban would deprive innovators of effective tools for protecting the fruits of their innovation, and that alternatives (e.g., NDAs) are not sufficient to protect valuable IP. In the absence of non-compete clauses, judiciously deployed, unfair competition will increase, and misappropriation will be more readily shrouded in secrecy within the recesses of competing research facilities. LES urged that the FTC defer action on this initiative in favor of greater input and involvement from innovators for whom effective IP protection is critical to survival.
