Successful resolution of unfair competition case

The client’s former employee, together with his partners, set up a competing business and launched an aggressive marketing campaign to promote his new business.

Pursuant to Article 15(4) of the Competition Act, the former employee is not entitled to use the confidential information of the undertaking for one year after the end of the employment relationship. The Law on the Legal Protection of Trade Secrets, in turn, provides for a prohibition on the use of illegally obtained information and clear and detailed redress mechanisms for the client.

Henrikas Stelmokaitis, our firm‘s competition attorney, drew on his experience in unfair competition cases to draft a claim against the new business and the former employee. We are pleased that the claim convinced the parties to come to the negotiating table and the competing business agreed, on terms favourable to the client, to suspend its business for a cooling-off period and to cease using the client’s trade secrets and marketing materials.

In this dispute, we sought to resolve the dispute as quickly as possible on terms most favourable to the client.