Hi,

I started an entertainment magazine four years ago that I sold to another company through a merger last year. The merger didn't work out for me and we're trying to resolve the dissolution. My former partner is being very difficult though and intends to get everything and more. In addition to the magazine information, he now wants to extend the no-compete clause to two of my hobbies.

1) I run a local music website called AsburyMusic.com that was started before the magazine was in existence
2) I run an online radio station

Neither AsburyMusic.com nor the radio station sell advertising or try to make money. Can these two things really be considered in violation of a no-compete clause?


Also, the logo used for AsburyMusic.com predated the magazine but he wants this logo as well saying it's part of the company assets yet this website was not part of the agreement.

lightgrw

"Another piece of advice I have for you: Stop calling these things "hobbies." Start getting your head wrapped around the concept that these are other ways you earn your living. If you do get dragged into court and admit they are hobbies, your defense against the clause is severly weakened."


So, you're saying that by calling them hobbies I'm in a worse situation than if I called them actual businesses? I guess I'm at a bit of a loss because I really don't ever intend to sell advertising with them. They are done mainly to promote my previous writing work as a portfolio. I guess that does make them business oriented in a way, but I always thought that the difference between a hobby and a business was the purpose of making money.

Thanks for your feedback and suggestions. They are greatly appreciated.

RubyPitbull

But, is your livelihood dependent upon your writing? Or do you do something else to earn an income? Or, is your intention in the next few years to make a living off of your writing? My only point in telling you what I did was to use it as a defense in court. The best defense against a non-complete clause is to prove that it will effect your livelihood. If you want to continue to call them hobbies, can the contract be manipulated by your partner to lay claim to anything in your control that existed prior to the publication of the magazine? Also keep in mind, that when all of this is over and done with and that dude is in complete possession of your magazine (and/or your hobbies), you are going to have to watch it all like a hawk. If he manages to turn it, or your "hobbies" into money making- ventures within a couple of years, you would have a good case to sue him for fraud. If there is enough money to be had out of that, you might find a good attorney willing to take on your case on a contingency basis. Then you wouldn't have to worry about paying up front fees. I still think at this point in time, you need someone experienced to review your contract and advise you.

lightgrw

"If he manages to turn it, or your "hobbies" into money making- ventures within a couple of years, you would have a good case to sue him for fraud."

I was wondering about this. Basically, I do not think he could prove that they made an honest attempt at creating a sales force. In the 12 months, there was the hiring of a friend of their's in the beginning. This sales person didn't sell anything and was gone in 2-3 months. From that time on until two months before I left there was no additional sales people. Two months before I left he hired a friend of his with no experience in selling print advertising and very little sales experience in general.

He "supposedly" was after this great sales person for three months with secret talks that he refused me to be in on. I am trying to find out whether or not these talks ever existed or not. I have a feeling that either they did not take place or he's got a deal in place to bring the sales person on board now that I'm out of the picture. The strange thing is that there really wasn't any reason to get rid of me (except for his own desire for power). I built the magazine up and got it to win awards alongside many awards that I won during the process. If anything, I was a pretty good asset. I guess his desire for power was behind it.

Nevertheless, I was wondering if the magazine suddenly started doing well if a case for fraud could be presented. I just couldn't stay on after the year with prospects not looking better. I was doing much better financially when it was just my paper.