Where Is That Line in the Sand?

Noncompete contracts are commonplace for most vendors or independent contractors. They prevent vendors from disclosing any confidential information, patented ideas or processes, etc., or any other information that a company considers proprietary. The conversation I was a part of yesterday went a step further. It was proposed that we construct a noncompete contract for our vendors or independent consultants that limits them to working on any similar projects to the one we had retained them to work on for the period of one to two years. Yes, you heard correctly! I am talking about not being involved in any projects that are similar to the project for which we have retained their services. So not only would you not be allowed to work for a competitor during the two years after your contract has expired with us, but you could also not work on any similar projects for two years. 

As you can image, I looked around the room to see if my peers' eyes were reflecting a reaction similar to mine, which was pure disbelief. To my amazement, there was only excitement in their eyes. What were they thinking? Why would any contractor agree to such a restiction? I wanted to try and understand the logic of their thinking, but the idea that a person or firm who builds their business on their level of expertise and its marketability would put it …