1/1/2016Apptopia—a recently launched marketplace for mobile app developers—is making it easier than ever for buyers and sellers of apps to enter into transactions. Since its creation, the service has seen over 120,000 apps uploaded to the site, and over 500 users have joined. As part of the process, however, sellers of the mobile apps must enter into non-compete agreements with buyers. As a result, buyers who do not consult with a New York non-compete attorney prior to entering into such a contract may find themselves facing restrictions with regard to the development and sale of future applications.
If the seller of a mobile app enters into a New York non-compete agreement, will it be enforceable? The answer depends on the facts and circumstances surrounding each sale and contract. Generally, New York non-competes will be considered reasonable, and therefore enforceable, if the following three (3) criteria are satisfied:
- The provision does not go beyond that which is needed to protect the buyer’s “legitimate interest.”
- The provision is not overly broad, such as being reasonably limited with regard to time and geographic scope.
- The provision is not “injurious to the public.”
To better understand whether the terms of your New York non-compete are reasonable and enforceable, it is vital that you consult with an experienced attorney who understands the complexities of this area of the law.
For more information about the enforceability of non-compete agreements between buyers and sellers of products or services, contact a New York non-compete agreement lawyer at (888) 497-3410.