In a win for TEAM’s former IBOs, a Georgia Court has ruled Quixtar’s non-compete clause unenforceable. In a quite short and simple decision, Judge David E. Barrett ruled that the lack of geographic limitation in the clause rendered it invalid.
At first glance this seems quite odd to me – "geographic limitations"? on an internet business? A quick google of non-compete geographic limitations reveals that this kind of conclusion is not uncommon for legal challenges to non-competes, but a further search for non-compete geographic limitations internet reveals that this type of argument with regard to internet-based businesses has been challenged.
Quixtar will undoubtedly appeal.
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