ContractsProf Blog

Editor: Jeremy Telman
Oklahoma City University
School of Law

Monday, December 20, 2010

Adobe Alleges Breach of a Non-Compete Agreement

Adobe As reported in the Deseret News, Adobe Systems is suing c Joshua James, the co-founder of Omniture, a company that Adobe bought in 2009.  James received $80 million in the transaction, and he was also paid handsomely to stay on as an Adobe executive in charge of the Omniture division.  When he left Adobe, he received another substantial one-time payment, but now Adobe claims that he has violated the terms of the agreement he entered into with Adobe at that time.  In a suit filed on December 10th, Adobe alleges that James bought Corda Technologies and now serves as that company's CEO.  Adobe alleges that Corda competes with Adobe and thus that James's purchase of and executive status in Corda violates his non-compete agreement.  In addition, Adobe alleges that James attempted to recruit at least one key employee from Adobe, also in violation of the agreement.  

James denies all wrongdoing, claiming that he has been very careful to abide by the terms of his agreement with Adobe and that he has never attempted to lure employees away from Adobe.  "In fact," he claims, "I have convinced dozens of unhappy Adobe people to stay."  I love that line, because you know someone is really your friend and has your best interests at heart when they tell you to keep the job that is making you miserable.  James also claims that Corda does not compete with Adobe.  Rather, Adobe buys Corda's products.  James chalks it all up to a personal vendetta against him.  But James apparently also filed a suit against Adobe alleging that it was trying to interfere with his work at Corda.  

I would be cautious about suing the company that owns Photoshop.  They can really do a number on you.


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