Non-competes in the game industry.

Started by
19 comments, last by frob 15 years, 8 months ago
So just to get this straight, once you leave you are not allowed to do a similar job for 1 year, and you get paid a fraction of what you previously earned? To me, this doesnt seem such a good deal, and is another reason why I think I will avoid game companies in my first few programming jobs after graduation.

I am interested in exploring the different ways around it.

1) Dont tell them and risk being sued.
2) Move states.
3) Move country.

Any more out there?
Don't thank me, thank the moon's gravitation pull! Post in My Journal and help me to not procrastinate!
Advertisement
Quote:Original post by _goat
Quote:Original post by Trapper Zoid
I've only seen contracts in Australia with clauses that said I couldn't compete at the same time as my employment with the company (i.e. I couldn't moonlight in the same field in direct competition). I've never seen any contracts with a clause restricting my employment after I leave the company.

I certainly wouldn't sign a contract with any conditions that stipulate that I can't work in the same field for any time after my employment has ended. I'm not even sure if that's legal in Australia.


Ditto. It seems a rather alien concept in Melbourne where people keep switching from company to company (seeing as how we're all located within 15 minutes of each other, yes 90% of the Melbourne-based industry, I am not making this up). Our boss continually rings up people at another company who used to work for us to ask questions about hardware, etc, in their field of expertise, and other companies ask favours of us here. It seems rather communal than competitive.


When I worked in McDonalds in Banbury, Oxfordshire, we would regularly share info with the Burger king store down the road. Once, we transferred a box of sausage meat when they ran out. At Christmas time there were supply issues thanks to a depot being covered in oil after the refinery next door burned down (famous event in the UK) and we used burger king napkins and straws.
Don't thank me, thank the moon's gravitation pull! Post in My Journal and help me to not procrastinate!
Quote:Original post by speciesUnknown
So just to get this straight, once you leave you are not allowed to do a similar job for 1 year, and you get paid a fraction of what you previously earned?


I'm not aware of any games company in the UK that has that in their contract for graduates, although to be fair it's not like I know people at all of them so there is a chance that some might I guess but I think you're fine.
i know quite a few people in games places here who've went from one job to the exact same job in another company less than 30 miles away within a week

all the companies round my area seem to be a bit incestuous the way the employees end up working for each one at least once
I had to sign a two year non-compete when I was hired, but it isn't that big of a deal. We've had multiple people (in particular programmers) go on to work at other companies and it hasn't been a big deal. The only time things would get sticky is if so I started my own company and tried to recruit some of my coworkers or I went to another company that does DS or Wii development and took some of our tools or game engine with me.
laziness is the foundation of efficiency | www.AdrianWalker.info | Adventures in Game Production | @zer0wolf - Twitter
This is my response from another thread dealing with the same topic.

At my company freelancing (or moonlighting) is completely allowed as long as these three basic criteria are being met at all times:

1) The game is not a direct competitor. For example, if you're making a FPS and your company only deals with sports games.

2) No company resources are being used at all. Everything you're creating is at home on your own equipment.

3) You're meeting all of your job requirements. In other words, you're not spending more time on your own stuff while your job-related stuff suffers or is ignored.

As many have suggested though- it really depends on your company and the contract you signed. To follow up on what Zipster said about amending the list, some companies allow this to updated throughout your employment. My company understands that you may continue to free lance and the list could become out of date quickly.

Thanks,

Nathan

Nathan Madsen
Nate (AT) MadsenStudios (DOT) Com
Composer-Sound Designer
Madsen Studios
Austin, TX

Quote:Original post by speciesUnknown
So just to get this straight, once you leave you are not allowed to do a similar job for 1 year, and you get paid a fraction of what you previously earned? To me, this doesnt seem such a good deal, and is another reason why I think I will avoid game companies in my first few programming jobs after graduation.

I am interested in exploring the different ways around it.

1) Dont tell them and risk being sued.
2) Move states.
3) Move country.

Any more out there?


4) an express written waiver from the company.

In the event of termination, if you get a job offer from a non-competing game company, you may want to get an express written waiver of the non-compete clause from your previous company.

I would never, ever recommend simply "not telling them"-- apart from subjecting you to a breach of contract claim, it could seriously damage your reputation with the company you're trying to work for.
~Mona Ibrahim
Senior associate @ IELawgroup (we are all about games) Interactive Entertainment Law Group
I've not had such a clause in any contract, but I know it's not unheard of in some industries in the UK. However I think companies are on shaky ground if they try to enforce a clause which restricts your ability to earn, unless they pay you - in the UK this is known as Garden Leave.
Personally, I wouldn't mind as long as I knew exactly what the would consider competition, if they agreed to pay me even if I took a job at a non-competing company. Being paid not to work is not something I'd have a problem with!
These have become increasingly common as companies increasingly screw their employees inviting them to leave. Perhaps that's just my cynicism talking about a coincidence...

Anyways, I've seen ones that were so vague that using a computer after leaving the company would be considered in violation. I've seen them ranging from 3 months to 3 years. Most are getting better/more standard as the legalese settles upon something that isn't too onerous (I turned down a job after 12 months unemployment because the non-compete was too restrictive and I was purposefully looking to job-hop).

And at least in the US, you should check about their legality. There is specific case law in certain states forbidding contracts that specifically restrict your ability to be gainfully employed. Other states have broad anti-slavery laws which have been used to combat these clauses.
My previous and current contracts (in Sydney, Aus) both had/have 6-month non-compete clauses.

No-one pays attention to them though, and I've never seen them enforced. I'm not even sure if they are legally enforceable after your employment has been terminated...

I know one guy who quit recently to start his own company, and the CEO just threatened him to not try to poach any of our staff for at least a year (or they would try to enforce the clauses).

Quote:Original post by ToohrVyk
... in return the company pays you a fraction of your previous salary for that same duration.
Wow, I've never heard of people being paid during the non-compete duration. That would make it slightly more palatable, I suppose.

This topic is closed to new replies.

Advertisement