3 Even if Washington law were to be applied, as digEcor urges, the prospects of enforcing
the 2002 NDA’s non-competition provisions as written would be dim. Washington law requires
that limits on competition be reasonable in duration and geographic scope. See, e.g., Perry v.
Moran, 748 P.2d 224, 230-31 (Wash. 1987) and Sheppard v. Blackstock Lumber Co., Inc., 540
P.2d 1373, 1376 (Wash. 1975). The court has serious doubts that Paragraph 1, 4, 5 and 6 of the
2002 NDA, with their uncertainty, inconsistency and expansive scope, would survive a
reasonableness inquiry.
4 “While many cases applying section 16600 arise in the context of an
employer-employee relationship, the statute also applies to other contracts, such as manufacture
or distributorship agreements between businesses or individuals.” Jan Marini Skin Research,
Inc. v. Allure Cosmetic USA, Inc., 2007 WL 1508686, *13 n.20 (Cal. App. Ct. May 24, 2007)
(citations omitted) (unpublished opinion).
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