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COPYRIGHT 2001 The Miami Herald
Byline: Cindy Krischer Goodman
Feb. 26--AN INTELLECTUAL APPROACH TO NONCOMPETE PACTS: In December, Miami attorney Jim Gale walked into the Redmond, Wash., headquarters of Microsoft Corp. to meet with the software giant's counsel. The outcome of the meeting could have had serious effects on his client, a startup Internet company launched by Microsoft alumni a year ago.
Microsoft had accused the company's management of violating noncompete restrictions contained in their employment agreement. Microsoft wanted to prevent them from using a competitor's technology and instead use Microsoft products. But Gale, a specialist in noncompete agreements and theft of trade secrets, had come up with a way to keep his client in business.
Gale's client took the unusual move of putting 23 employees, or 28 percent of its work force, on a leave of absence, then having them return to work when their year-long noncompete restrictions expire. For most of them, that expiration date would arrive within weeks or months. The company continues to operate.
This is the second such high-profile matter Gale has been involved in the past year....
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