Non-compete clauses?

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8 comments, last by Tom Sloper 12 years, 7 months ago
Does anyone have experience with non-compete clauses in employment contracts from rather large game companies? Is there usually any negotiating on them or exceptions for pre-existing projects? Does it matter if your core job wouldn't be game development?

I ask because I am being strongly considered for a infrastructure related (non-game) programming position at a branch of an unnamed incredibly large game company and I currently have a couple different indie game projects I'm working on, plus I have a standing agreement for contracting out maintenance work for another non-game project I've done. What are the odds I would be able to at least continue the projects I'm doing now? Would they be put off by me even asking for exceptions on certain projects if they have a standard non-compete agreement?

Any comments from people who have been through similar situations would be helpful.
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Rules tend to vary by state, and some states (like California) they are not allowed except under very limited circumstances. In most cases there are provision that non-competes cannot prevent you from earning a living. You should try to find out more specifically what the laws are in your area.

Not sure if this is accurate, but here is what I found on non-compete in Utah from a quick Google search.

Utah Non-Compete Laws
Moving to Biz/Law.



I am not a lawyer. Do not take this as legal advice.


Generally speaking, most employers are decent about relaxing their non-competes if you are upfront with them. Talk to whoever you're interviewing with, mention that you have outside interests, and inquire if you'd be able to continue pursuing them provided it does't impede on your work with the company, or directly leech any knowledge/IP from them. They should be cool with it.

Wielder of the Sacred Wands
[Work - ArenaNet] [Epoch Language] [Scribblings]

I've always thought of them as being completely non enforceable from a legal standpoint, however, if it's company policy and part of your contract, then you should expect to be fired for breaking such an agreement.

At the last big company I worked for, it was a standard part of the contract, but a lot of people worked on outside projects (e.g. their own iPhone games, etc), and the boss always gave people permission to do this when asked.

I wouldn't be afraid to ask for permission to continue your side projects -- frame it as a positive for the company; you're honing your professional skills outside of work hours wink.gif
Alternatively, you can just keep quiet and continue with your side projects, and then hope they don't fire you when the find out tongue.gif
Thanks for the comments, that makes me feel a lot better about prospects for the job. I guess I'm more worried about being sued for assets if any of the games I work on take off than being fired, but I'll definitely be up front with the hiring manager next time we talk and make sure there won't be any conflicts. They seemed to be surprisingly laid back for a big company when I did the phone interview.

Thanks for the comments, that makes me feel a lot better about prospects for the job. I guess I'm more worried about being sued for assets if any of the games I work on take off than being fired, but I'll definitely be up front with the hiring manager next time we talk and make sure there won't be any conflicts. They seemed to be surprisingly laid back for a big company when I did the phone interview.


I am not a lawyer, this is not legal advice.... standard stuff.

In general, any existing work is protected by copyright law and different from non-competes. That will generally fall under intellectual property clauses, which are rare for prior work and more often limited to 'any work done on company time, or using company equipment is the company's' sort of stuff that is protection for the company and rather sane. Even these clauses often allow for you to specify exceptions/prior art in the employee/hiring agreement. You'll need to be careful with stuff you come up with during your employment, but stuff started before employment is fairly easy to protect assuming you don't sign something that specifically transfers ownership/license.
Most "big companies" will have stock contracts that you can't modify. Modifications would require approval from a legal department and approval from a high-level executive, and it generally isn't worth it for a new hire.

You would need to be a very special case to deserve that much effort, perhaps someone they desperately want as a specialist expert. They need to really want you badly, meaning they probably came directly to you and recruited you specifically. Think of it this way: If you don't have an established wikipedia page describing your accomplishments and amazing achievements in the field, the incredible things you have published, and otherwise saying how awesome you are, then you probably don't fit the category of getting a modified contract.

For almost everyone those companies generally have their stock contract with pages for you to write in your own prior inventions and exempted work. Fill those out.

If you are seriously concerned about it, to the point where you will lose sleep over it, then invest the small amount ($150 or so) to have an employment lawyer look over the contract with you and help you attach the right list of projects and prior work.

Remember that the big corporation is doing it as a CYA measure. They don't generally care about your side projects. Even if they do care, it generally isn't worth the cost of going after you through enforcement. What is it going to cost them to enforce it in the courts? Several tens of thousands? A few hundred thousand? If it gets appealed, possibly into the millions? Your pet project likely isn't worth the risk.

They have those clauses to help them defend against a large team leaving and creating a competitor. Something similar happened several years back with Call of Duty and Medal of Honor. The original dev team was disgruntled, quit, started their own studio, and made a better product. This type of thing is worth the money to litigate, and IIRC they had a legal challenge that was settled for undisclosed terms.
Most game companies I've worked at had a non-compete clause. At my last job I asked the studio manager about it and he said it was just to cover their butts and prevent large groups of people leaving to form a rival studio, or to stop individuals developing almost identical games on the side and basically stealing ideas. Unfortunately as Frob says they're not likely to modify your contract so you basically have to trust that they won't get legal on yo ass (and be pretty sure that your outside projects won't directly compete with them).
Update: I got the job and as expected it has a very strict non-compete clause that basically says anything in the realm of "entertainment" that I create at home in my own time while employed there belongs to them. There is a place to list previous inventions, but it also mentions that if anything listed there is made public while I am employed, it will transfer to them. Furthermore, it also states that only the CEO has the authority to modify any of the terms of the employment contract.

I get that it's a CYA measure and to some extent why they do it, but it also seems a bit excessive since I like to do programming in my off time and now I can't legally make any extra money off it since nearly anything could be construed as "entertainment" of some sort. Unfortunately the opportunity is too good to pass up, so I guess I'll start gaming a lot more since on the plus side I get many free games as an employee :)
Well, now you get to relax instead of do more work when you're off work. You can always quit and do your own thing after you've saved up enough dough.

-- Tom Sloper -- sloperama.com

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